C O L L E C T I V E A G R E E M E N T

between

DOMTAR Dryden Operations

and

UNIFOR

LOCAL 105.1

EFFECTIVE SEPTEMBER 1, 2014 TO AUGUST 31, 2018

TABLE OF CONTENTS

ITEM PAGE NO.

Accidental Death & Dismemberment ......................................................................... 79

Additional Floating (Non-Shutdown) Holidays .......................................................... 34

Adjustment of Differences ............................................................................................. 6

Adjustment of Individual Occupation Rates ............................................................... 13

Appendix "A"

- (Schedule of Rates - Mill) ............................................................................... 97

Appendix "B"

- (Rules of Conduct) ........................................................................................ 102

Appendix "C" - (Check Off Authorization) .............................................................. 109

Appendix "D"- (List of Jobs, re: Bumping) ............................................................. 110

Appendix "E"- (List of Classifications & No. of Employees as Referred to in Clause

1202.2 (D)) ................................................................................................................. 111

Appendix "F"- (Spare Board Employees) ................................................................. 113

Appendix "G"- (Job Classification Plan)………………………………………….120

Appendix "H"- (Operation of Essential Services) ........... …………………………125

Appendix "I" - (Dental Plan) ................... …………………………………………126

Appendix "J"- (Extended Health Care Plan) ............................................................. 132

Appendix "K"- (Life Insurance) ................................................................................ 136

Appendix "L"- (Flexibility) ....................................................................................... 142

Appendix "M"- (Twelve Hour Shift Agreement) ..................................................... 144

Appendix "N"- (Work Systems Agreement) ............................................................. 154

Appendix "O" - (Establishment of Two Trades Agreement) .................................... 155

Appendix “P” – (Paid Education Leave)…………………………………………156

Appendix “Q” – (Decisions Impacting Job Security)……………………………157

Appendix “R” - (National Forest Sector Council)……………………………….158

Application to Pulp Mill ................................................................................................ 1

Arbitration ...................................................................................................................... 8

Automation & Technological Change ......................................................................... 91 Bereavement Leave ...................................................................................................... 41

Classifications and Wage Rates ................................................................................... 12

Complaints, re: Discharge ............................................................................................. 8

Day Off in Lieu of Sunday .......................................................................................... 23

Definition of Straight Time Rate ................................................................................. 43

Dental Insurance .......................................................................................................... 87

Dental Plan ................................................................................................................. 126

- Covered Expenses ......................................................................................... 127

- Integration ..................................................................................................... 130

- Predetermination of Benefits ........................................................................ 129

ITEM ............................................................................................................ PAGE NO.

- How to Claim ................................................................................................ 130

Departmental Seniority ................................................................................................ 10

Differences, re: Promotions ........................................................................................ 11

Duration and Reopening .............................................................................................. 96

Emergency & Normal Shutdown ................................................................................ 15

Examination Pay ........................................................................................................ 149

Exceptions to Time and One-Half Pay ........................................................................ 23

Exclusions from Bargaining Unit .................................................................................. 4

Extended Health Care Insurance ................................................................................. 88

Extended Health Care Plan ........................................................................................ 132

- Covered Expenses ......................................................................................... 133

- How to Claim ................................................................................................ 135

Failure to Notify When Services Not Needed ............................................................. 24

Filling Vacancies ............................................................................................................ 9

General Purpose ............................................................................................................. 1

Grievance Procedure ...................................................................................................... 6

Group Life Insurance ................................................................................................... 77

Group Welfare Insurances ........................................................................................... 66

Hospitalization and Medical Care Insurances ............................................................. 76

Initiation Fees & Membership Dues .............................................................................. 4

Interpretation .................................................................................................................. 5

Job Change During Call-In Period .............................................................................. 22

Job Evaluation .............................................................................................................. 95

Job Posting ..................................................................................................................... 9

Jurisdiction ..................................................................................................................... 5

Jury Duty ...................................................................................................................... 42

Licence Renewals ........................................................................................................ 43

Long Term Disability Insurance .................................................................................. 79

- Accumulation of Vacation, Pension Credits

& Welfare Contributions ................................................................................... 85

- Amount of Benefit .......................................................................................... 82

- Benefit Period ................................................................................................. 83

- Cessation of Benefits ...................................................................................... 83

- Definition of Disability ................................................................................... 81

- Effective Date of Coverage............................................................................. 80

- Eligibility ......................................................................................................... 79

- Group Life Insurance ...................................................................................... 86

- Payment for Disability Benefits................................................................... 87

- Premium Waiver .......................................................................................... 86

- Recurrence of Disability from a Different Cause ........................................... 85

ITEM ............................................................................................................ PAGE NO. - Recurrence of Disability from a Same or Related Cause ............................... 84

- Rehabilitation .................................................................................................. 85

- Qualifying Period ............................................................................................ 81

Meal Allowance ........................................................................................................... 17

Membership Dues .......................................................................................................... 4

Metrification ................................................................................................................. 43

No Interruption of Work ................................................................................................ 6

No Limitation in Emergencies ..................................................................................... 17

No Pyramiding ............................................................................................................. 24

Non-Discrimination ..................................................................................................... 95

Normal Hours of Work (Day Workers) ...................................................................... 14

Normal Hours of Work (Tour Workers) ..................................................................... 14

Normal Hours of Work (Night Workers-Mill Only)................................................... 14

O.H.I.P. ......................................................................................................................... 76

Operation of Essential Services ................................................................................. 125

Paid Holidays ............................................................................................................... 28

Paid Holiday Periods .................................................................................................... 29

Preference in Hiring ....................................................................................................... 5

Premium Time.............................................................................................................. 18

Payment for Work Before or After Completing

Regular Shift (CALL TIME) ....................................................................................... 20

Payment for Work on Sundays, Days Off, Paid Holidays .......................................... 22

Payment for Work in Excess of Regular Hours

(Day & Night Workers) ............................................................................................... 18

Payment For Work in Excess of Regular Hours (Tour Workers) ............................... 18

Rate Schedules ............................................................................................................. 12

Recognition .................................................................................................................... 2

Regular Operating Schedules ...................................................................................... 13

Rest Period ................................................................................................................... 19

Retirement Income Benefits ........................................................................................ 44

- Benefits on Death After Retirement ............................................................... 59

- Benefits on Death Prior to Retirement ........................................................... 57

- Benefits on Termination of Employment ....................................................... 60

- Disability Accrual ........................................................................................... 56

- Early Retirement ............................................................................................. 48

- Earnings ........................................................................................................... 46

- Employee Contributions ................................................................................. 53

- General Provisions .......................................................................................... 65

- Interest ............................................................................................................. 58

- Normal Retirement Benefits ........................................................................... 46

ITEM ............................................................................................................ PAGE NO. - Normal Retirement Date ................................................................................. 46

- Optional Forms Under the Plan ...................................................................... 59

- Pension Plan Modifications as of April 19, 2005…………………………..55

- Pensionable Service ........................................................................................ 53

- Portability ........................................................................................................ 64

- Special Early Retirement ................................................................................ 51

Rules of Conduct .......................................................................................................... 44

Safety ............................................................................................................................ 27

Safety Footwear ........................................................................................................... 95

Schedules of Rates (MILL)

- Apprentices (All Trades) ………………………………………………. 101

- Bleach Plant/Chemical Plant .......................................................................... 97

- Clarifier ........................................................................................................... 98

- Combined Services ......................................................................................... 98

- Digesters .......................................................................................................... 97

- Electrical & Instrumentation ........................................................................... 99

- General ............................................................................................................ 99

- Mechanical Trades ........................................................................................ 100

- Pulp Machine .................................................................................................. 97

- Recausticizers .................................................................................................. 97

- Stores ............................................................................................................... 99

- Technical Services ........................................................................................ 101

Severance Pay .............................................................................................................. 92

Shift Differential .......................................................................................................... 26

Supervisory Premium .................................................................................................. 25

Supplementary Vacation .............................................................................................. 38

Temporary Vacancies (Mill Only) .............................................................................. 11

Trades and Operator Flexibility ................................................................................... 96

Trial Periods ................................................................................................................... 9

Twelve Hour Shift Agreement (Appendix "M") ....................................................... 144

Union Shop & Maintenance of Membership ................................................................ 3

Vacation Pay ................................................................................................................ 36

Vision Care ................................................................................................................... 88

Weekly Indemnity Insurance ....................................................................................... 67

- Administration ................................................................................................ 74

- Amount of Benefit .......................................................................................... 69

- Benefit Period ................................................................................................. 70

- Cessation of Benefits ...................................................................................... 71

- Commencement of Benefit Payments ............................................................ 68

ITEM PAGE NO.

- Definition of Disability ................................................................................... 69

- Effective Date of Coverage............................................................................. 67

- Eligibility ......................................................................................................... 67

- Lay Off ............................................................................................................ 72

- Periods of Disability Which Are Not Covered by the

Weekly Indemnity Benefit Plan ........................................................................ 73

- Physical Examination ..................................................................................... 74

- Recurrence of Disability from the Same or

Related Cause .................................................................................................. 72

Wire Change - Kraftmill .............................................................................................. 25

Work by Supervisors...................................................................................................... 5

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This Agreement is entered into by and between Domtar Inc, Dryden Operations, Dryden, Ontario, herein called the "Company", and Unifor and its affiliated Local 105.1 of Dryden, Ontario, herein called the "Union".

APPLICATION TO DRYDEN MILL OPERATIONS The provisions of this Agreement shall apply to those employees of the Company classified on Appendix "A" of this Agreement in Dryden Mill Operations, unless otherwise indicated by the captions. 100 - GENERAL PURPOSE 101 The general purpose of this Agreement is, in the mutual interest of employer and employee, to provide for the operations, maintenance, repair of equipment and buildings, project work, installation of new equipment or new construction of the plant(s) hereinafter mentioned under methods which will further to the fullest extent possible the occupational health and safety and the economic welfare of the Company and its employees, the economy of operation, quality and quantity of output, cleanliness of plant and protection of property. It is recognized by the Agreement to be the duty of the Company and the employees to co-operate fully, individually and collectively, for the advancement of said conditions.

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102 It is the Company’s intention to do repair and maintenance work with the Company crews. Routine maintenance, project work, or repair work that requires additional workers, trades personal or specialized skills beyond those working as trades personal at the mill may be contracted out. Prior to the Company deciding to contract out, the Company and Union will review and discuss methods to complete the required work. The Company recognizes the significance and importance of this issue to the Union and its membership. 103 Contracting out will be kept to a minimum and where practical the Company will endeavor to use unionized contractors and the Signatory Union concerned will be advised a minimum of three (3) weeks in advance where possible of the Company’s plans in this regard. When determining what is practical the Company will consider cost, timing, skills and warranty work. 200 - RECOGNITION 201 UNION RECOGNIZED The Company recognizes the Signatory Union as the agency representing their respective membership for the purpose of collective bargaining. 201.1 The Company agrees to pay lost time wages to the Union executive while off on union business. The local union shall

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be billed monthly for all wages paid. The Company will make all normal deductions. 202 UNION SHOP AND MAINTENANCE OF MEMBERSHIP It is the desire of the Parties to this Agreement that all employees will maintain membership in good standing as per Unifor National Constitution in the Signatory Union and it is agreed that: 202.1 Any employee who is now a member, or after this date, becomes a member, or is reinstated as a member of the Signatory Union, shall maintain such membership in good standing as a condition of employment. 202.2 All new employees whose rates are fixed by this Agreement shall become Members of the Local Union within thirty (30) days after entering the Company's employ, and shall maintain membership in good standing, and shall, upon hiring, sign a Union deduction card for monthly dues and initiation fees at the Human Resources office for the Union. Check-off of Union dues is voluntary and revocable. The authorization to deduct the amount of Union dues may be revoked during the two (2) week period preceding the next anniversary date of the Collective Agreement.

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Initiation Fees and Membership Dues as follows: The Company is required to deduct or refund that amount as advised in writing by the Financial Secretary of Local 105 Unifor and remit same to the Financial Secretary of 105. In consideration of this deduction and forwarding service by the Company, the Signatory Union agrees to save the Company harmless against any claim or liability arising out of or resulting from the collection and forwarding of these dues. The Check-off Authorization form is attached as Appendix "C". 202.3 All new employees shall serve a probationary period of four (4) calendar months. The company will inform the Union in advance of any issues that may jeopardize the employee’s employment. 203 EXCLUSIONS FROM BARGAINING UNIT The following employees shall not be eligible for membership in the Bargaining Unit. Superintendents; Office Force: Technical Control Department (except Technicians); Plant Protection Officers; Salaried Supervisors; Engineering Department.

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204 WORK BY SUPERVISORS Supervisory personnel shall not perform work which would normally be a function of an employee listed in the job classifications covered by this Agreement, except in the case of instructions and in the case of emergencies. 300 - PREFERENCE IN HIRING When hiring employees the Company will give preference to former Dryden Unifor members that had been laid off, exhausted their recall rights, or severed their employment, and who can meet Company employment requirements. 400 - JURISDICTION Questions of jurisdiction between the Labour Unions shall be decided by the Signatory Unions. If the Signatory Unions are unable to resolve a jurisdictional question, the Company shall be entitled to assign the work in question temporarily to employees in whichever Signatory Union it determines. 500 - INTERPRETATION 501 Further interpretation of this Agreement may be made by the mutual consent of the Signatory Parties hereto. 502 It is agreed that no Union By-Law will supersede any clause in the Agreement.

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600 - NO INTERRUPTION OF WORK It is understood and agreed by the Parties to this Agreement that there shall be no strikes or lock-outs during the period of this Agreement.

700 - ADJUSTMENT OF DIFFERENCES 701 GRIEVANCE PROCEDURE 701.1 - Step 1 Disputes, grievances or complaints by an employee or group of employees shall be referred to the supervisor involved and two (2) members of the Union Committee. 701.2 - Step 2 If no satisfactory settlement is made within forty-eight (48) hours, Saturdays, Sundays and Paid Holidays excluded, the matter will be referred by the Supervisor, the employee and the two (2) members of the Union Committee to the department superintendent. 701.3 - Step 3 If no satisfactory settlement is made within forty-eight (48) hours, Saturdays, Sundays and Paid Holidays excluded, the employee shall refer the question to the Union Executive which may present a grievance in writing to the department manager or their designated representative. The findings of the Company representative shall be filed in writing within seventy-two (72) hours, Saturdays, Sundays and Paid Holidays excluded.

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701.4 - Step 4 If no satisfactory settlement is made within fifteen (15) days, the question may, on the request of the Management or the Union, be referred to the National Representative of Unifor and/or their representative, and the General Manager having jurisdiction in the matter and/or their representative. 701.5 Any redress which results in “work in kind” shall reflect the opportunity lost. 701.6 All time elements may be extended by mutual consent. Agreement for extension may be in writing. 701.7 If an agreement cannot be reached, the matter may be referred to Arbitration. 701.8 Grievances, which involve Company-wide interpretation, administration or alleged violation by either party of the Agreement, may, after first being discussed with the Manager, Human Resources, or his/her designated representative, be processed commencing at the Third Stage level with the Company's representative.

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702 ARBITRATION 702.1 In Arbitration, the Company and the Union shall each select one (1) person; these two (2) shall select a third party. In the event of the failure of the two (2) parties selected to agree upon the third member of the Board, they shall request the Provincial Minister of Labour to appoint a third party. This Arbitration Committee shall convene and render a decision within fifteen (15) days and such decision shall be final and binding upon the parties of the Agreement. 702.2 It is understood that the function of the Arbitration Board shall be to interpret and apply the Agreement and deal only with specific questions as submitted. The Board shall have no authority to add to, subtract from or to modify or change any of the terms of this Agreement. They shall, however, have the right to make a just and equitable award. 702.3 The fees and expenses of its respective nominee to the Arbitration Board shall bear on each respective party. The Chairman's expenses will be shared equally by both parties. 703 COMPLAINTS, RE: DISCHARGE If a discharged employee claims an injustice, the complaint shall be presented within forty-eight (48) hours, Saturdays, Sundays and Paid Holidays excluded, and an employee proven to have been unjustly discharged shall be reinstated and receive pay for time lost on a just and equitable basis.

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The Union will be notified in writing within forty-eight (48) hours when an employee is suspended or discharged, excluding Saturdays, Sundays and Paid Holidays. 704 The Company will provide space in the existing mail facility located outside of the Human Resources Office for the local union. 800 - FILLING VACANCIES 801 TRIAL PERIODS In cases of promotion in positions within the jurisdiction of the Local Union 105.1, the oldest employee in point of service within departments shall have preference with a sixty (60) worked day trial period. If unable to handle such a promotion, the employee shall be returned to their former position. 802 JOB POSTING When vacancies occur or new jobs are created outside regular lines of progression, such positions shall be posted on the bulletin board for five (5) days, excluding weekends and holidays before they are permanently filled. In the event that the employee does not prove satisfactory within a ninety (90) day probationary period, the employee will be returned to their former position and will retain their previous seniority. At the employee’s own request, within twenty-eight (28) days, the employee will be returned to their former position and retain their previous seniority. If an employee elects to return to their former position, or is moved back by the Company, they shall not have the right

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to bid on that position again for a period of one (1) year from the date of their return to their former position. The Company agrees to supply the Union with a list of all applicants for each job posting including applicable educational qualifications and seniority. If the Company proposes to give a posted job to anyone other than the senior person who bids, of the Union of its jurisdiction, the Company shall present the name of its selectee to the Union which will have an opportunity to discuss the qualifications of the senior employee with Management before the job is filled permanently. 803 DEPARTMENTAL SENIORITY 803.1 General Promotions and demotions are to be confined to a department. In case of demotion, departmental seniority will apply until an employee reverts to the base job, at which time the employee having jurisdiction over the base job shall maintain their seniority in length of service over other employees in the base job. A list of base jobs has been agreed to by the Company and the Union. (See Appendix "D"). If the number of senior employees involved in a permanent lay-off exceeds the number of junior employees holding bottom jobs in the lines of progression, the Company, if requested by the Union, will locate other job openings in jobs held by junior employees above the bottom jobs so as to assure continued employment for senior employees.

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Recall after lay-off shall be in reverse order of lay-off subject to the employee having the qualifications to do the job available. Laid off employees shall retain seniority for a period of one (1) year. When an employee has secured a job on the basis of their qualifications, they shall be considered as having priority on that particular job over any other employee who may qualify for the job at a later date. The above shall apply except when the Company and the Union have mutually agreed to an extension of study time to obtain the required qualifications. 804 DIFFERENCES, RE: PROMOTIONS Differences of opinion relating to an employee's qualifications for a job or position shall be discussed between the Union Committee and Management and a decision will be rendered. 805 TEMPORARY VACANCIES (A) It is agreed that employees will move up to fill only the normal number of vacancies that are allowed off in any one department in any given week for all recognized absences. The normal number of employees in any one department who may be allowed off in any one week will be determined by Management as per current practice to ensure efficient operation in the department. (B) Additional employees may be allowed to take time off during shutdowns for all recognized absences.

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806 CARD RATE CHANGES The Company will make card rate changes effective in the pay period immediately following the day when a person quits, dies, retires, or has officially left the department through the bid process.

900 - CLASSIFICATIONS AND WAGE RATES

901 RATE SCHEDULES Classification and hourly wage rates as appended form part of this Agreement. Appendix "A" - Dryden Mill Operations Schedule of Rates 901.1 Employees shall be paid the rates for the jobs to which they are assigned, except as noted in Curtailment Clause, 1104.3. 901.2 Employees who are training in department lines of progression will be paid at their regular card rate or the rate of pay that they would normally receive had they not been on training.

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902 ADJUSTMENT OF INDIVIDUAL OCCUPATION RATES 902.1 When and as occupations are created not listed on the attached Wage Schedule, the rates for such occupations shall be as established by negotiation at that time. 902.2 The Union shall have the right to discuss local adjustments with Management prior to August 31 of each year of the Collective Agreement and prior to wage negotiations in 2018. All local adjustments must be submitted in writing by June 15th of each year, for discussion and final settlement at a local level prior to August 31 of each year of the Collective Agreement, and prior to wage negotiations in 2018 and where granted, adjustments will become effective September 1st. It is understood that local adjustments are construed to mean a consideration of individual job rates in cases of gross inequality or major changes in job responsibility. The above applies to those classifications not covered by the Job Classification Plan, or Apprenticeship Program.

1000 - REGULAR OPERATING SCHEDULES All operations will operate on a continuous basis.

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1100 - NORMAL HOURS OF WORK

1101 DAY WORKERS The normal hours of work for day workers shall be from 8:00 a.m. to 4:00 p.m. or as mutually agreed by the signatory parties. Day workers, when changed to night workers for short periods, may be scheduled 8:00 a.m. to 4:00 p.m., 4:00 p.m. to 12:00 p.m., and 12:00 p.m. to 8:00 a.m. or as mutually agreed. 1102 TOUR WORKERS

Employees engaged in an operation scheduled in advance for at least twenty-four (24) hours running are considered tour workers.

Normal hours for tour workers and hours at which tours shall change shall be from 7:00 a.m. to 3:00 p.m., 3:00 p.m. to 11:00 p.m. and 11:00 p.m. to 7:00 a.m. or as mutually agreed by the signatory parties.

Shift relief change times are to be re-confirmed every year in each department and that these hours would then constitute the normal hours of work for each department. 1103 NIGHT WORKERS Employees not on continuous tour and scheduled to work hours other than 8:00 a.m. to 4:00 p.m. shall be called night workers. Night workers will receive a shift differential for shifts commencing between the hours of 4:00 p.m. and 8:00 a.m.

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1104 EMERGENCY AND NORMAL SHUTDOWN 1104.1 In emergency shutdowns due to breakdowns of twenty-four (24) hours or less (includes the shift in which the shutdown occurs and two (2) shifts following), operating crews will be provided with work and will be paid at the rate of their regular occupations or at the rate of the job to which they are assigned, whichever is greater. This provision will not apply in the event that lack of orders, strikes, stoppages or interference with work in connection with labour disputes, "Acts of God" or failure of public utilities, or any other occurrences which are beyond the control of the Company, interfere with work being provided. 1104.2 On scheduled normal shutdowns for maintenance, tie-ins, cleaning, etc., operating crews will be scheduled to work their normal days and expected to do the work assigned and will be paid the rate of their regular occupations or the rate of the job to which they are assigned, whichever is greater. Tour workers may be scheduled to work with day crews during their shutdowns and, if so scheduled, will work day work hours. In no case will a night shift worker be scheduled to work the succeeding day shift or day work hours. Maintenance tour workers (including Mech Tech II’s) may be scheduled to work with day crews during shutdown

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periods, and if so scheduled, may work day work hours. Nights or days for tour workers will be determined by their shift the day before the shutdown begins, as per their normal schedule. Days off will be paid as day workers. In no case will a night shift worker be scheduled to work day worker hours on the following day. {See Letter of Understanding “Payment for working maintenance shutdowns”}. 1104.3 The Company will advise the Union of any imminent curtailment of mill operations. In the event of any curtailment in this operation which necessitates scheduling a shorter work week (six (6) days or less operation), the Company will attempt to minimize impact on employees affected. Personnel involved in pulp operations who are set back in the above situation will be re-assigned in accordance with their seniority and will be paid the rate of the job to which they are re-assigned. Should a severe curtailment require a complete, but temporary shutdown of the operation, personnel affected will be re-assigned in accordance with their seniority. In this event, card rates will be maintained for a four (4) week period from time of setback, beyond which time they will be paid the rate of the job to which they are re-assigned.

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1105 NO LIMITATION IN EMERGENCIES No limitations on hours of work contained in this Agreement shall apply to employees of any class when engaged in emergency work involving breakdown or emergency work involving protection of life or property. 1106 MEAL ALLOWANCE The Company agrees to provide a meal for employees who are required to work over their normal hours in the following situations: (a) When required to work more than one (1) hour beyond their normal quitting time. This applies to day, tour and night workers. (b) When an employee is called in to work before their shift commences and does not have time to arrange for their lunch or meal. Such meal will be supplied at regular mealtimes. (c) When scheduled to work a shift or tour in excess of nine (9) hours. It is understood that employees will provide their first meal. The Company will provide the second meal after eight (8) hours of work. Once having provided a meal, the Company will provide further meals at four (4) hour intervals until the employee is relieved from duty. The above does not apply to day workers scheduled to relieve on shift. The meal period will not exceed twenty (20) minutes and will be paid at the applicable rate. This paid period is

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not to commence until the meals have been delivered to the job and workers are required to stay on the job until then. NOTE: Refer to Meal Allowance Letter of Understanding for the term of the collective agreement. 1200 - PREMIUM TIME 1201 PAYMENT FOR WORK IN EXCESS OF REGULAR HOURS 1201.1 Day (and Night) Workers Work done in excess of eight (8) hours by employees, subject to the provisions of 1100, shall be paid for at the rate of time and one-half (1½). Work done by such employees before or after their regular starting or quitting time and at noon hour shall also be paid for at the rate of time and one-half (1½). 1201.2 Tour Workers (A) Tour workers required to perform any work after being

relieved from their regular job shall receive time and one-half (1½) for such work.

(B) Tour workers shall be paid at the rate of time and one-

half (1½) for all work performed beyond their regular daily hours of work, with the following exceptions:

Overtime worked by special arrangement between a tour worker and their mate to exchange shift with the

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approval of their supervisor, and when this can be accomplished without additional cost or penalty to the Company;

When required to replace an employee for tardiness up to two (2) hours. 1201.3 Rest Period Any worker required to work more than sixteen (16) hours in a twenty-four (24) hour period will be given one (1) hour off with pay for each hour worked beyond sixteen (16) hours at their regular straight time rate commencing at the starting time of the following day of work. However, if the following day is not a day of work, this clause will not apply. The work day means the employee’s regularly scheduled shift. Excessive hours worked as a result of an arrangement between employees is excluded. Any worker, excluding tour workers, called in who works two (2) hours or more after midnight shall receive time off (at normal pay) equal to the time worked between midnight and 6:00 a.m. provided they are scheduled to work the following day and report at the deferred starting time. This also applies to an employee who was scheduled to work the 4:00 p.m. to 12:00 a.m. shift and whose subsequent shift is the following day, 8:00 a.m. to 4:00 p.m. Through mutual agreement with the employee’s supervisor the employee may opt to move this rest period to the end of this shift.

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1202 PAYMENT FOR WORK BEFORE OR AFTER COMPLETING REGULAR SHIFT (CALL TIME) 1202.1 Call-in Or Hold Over (A) Any employee who is called in for work prior to or after

completion of their shift or during noon hour shall be paid at the rate of time and one-half (1½) with a minimum of four (4) hours at straight time. This applies whether the employee is told or called in.

Any employee who is called in for work on a Sunday, shall be paid a minimum of six (6) hours straight time or time and one-half (1½), whichever is greater.

(B) If a day or tour worker is requested to do overtime work

before the end of their regular working hours, they will receive overtime rates as provided under 1201.1 above. But, if such overtime commences over one (1) hour after the end of their regular working hours, payment will be at the rate of time and one-half (1½) with a minimum of four (4) hours straight time. Except as otherwise provided herein, workers called on duty before or after regular working hours or on their scheduled days off shall receive time and one-half (1½) for all overtime work and in no case shall they receive less than four (4) hours pay at regular rates for the work performed on each call.

(C) If a day worker is called in before 5:00 a.m. and is

required to continue on the job for which they were called beyond 8:00 a.m. of a regular working day, they shall continue to receive time and one-half (1½) until,

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in the opinion of the supervisor, the job is completed. The employee will be allowed to go home when the job is completed, but if they elect to remain will revert to straight time payment.

(D) Any employee having been told before stopping work

for the noon hour that their services would be required during any part of the noon hour. Call time will not apply in this case.

1202.2 Exceptions Change from day worker to night worker with twenty-four (24) hours notice. (A) Day workers, when required on emergency repairs and

notified not later than 2:00 p.m. the previous day, may be changed to night workers without payment of premium time on this account.

(B) A day worker, may be changed to a night worker, and

no premium time will apply, provided the employee is notified within the first hour of reporting to work, that their next scheduled work day has been changed.

(C) A night worker may be scheduled to a day worker and

no premium time will apply, provided the employee is notified within the first hour of reporting to work, that their next scheduled work day has been changed and provided the change does not result in the employee working two (2) consecutive shifts.

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(D) Call time shall not apply to employees as listed in Ap-pendix "E" who are scheduled to provide for an efficient start-up.

(E) Schedule change when mutually agreed upon. 1202.3 Job Change During Call-in Period Employees called in to do a specific job will be paid call time. However, if they are requested to do another job which is in no way related to the original job they were called in for, then they will be paid call time for each unrelated job assigned.

1203 PAYMENT FOR WORK ON SUNDAYS, DAYS OFF, PAID HOLIDAYS 1203.1 General Employees shall not be required to work on Sundays or designated days off unless they are given a minimum of four (4) hours pay or time and one-half (1½) whichever is greater. Double time will be paid for all hours worked in excess of eight (8) hours during the twenty-four (24) hour period of a Sunday, or scheduled day off. Any employee working the twelve (12) to eight (8) shift prior to the Sunday or scheduled day off shall qualify for the above providing the hours of work are consecutive. Employees shall not be required to work on a Paid Holiday unless they are given a minimum of four (4) hours pay or

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double time, whichever is greater, and will have an extra day off with pay at a date mutually agreed on. 1203.2 An employee required to work on a Paid Holiday which falls on a Sunday will be paid the rate of time and one-half (1½) for their next regularly scheduled day worked. 1203.3 Posting of Scheduled Days Off It is agreed that schedules shall be posted in each department not later than Thursday, 3:00 p.m. each week showing the crews for the following week. Such schedule shall show the day(s) off for each employee on the crew. 1203.4 Day Off in Lieu of Sunday When an employee works six (6) hours or more on Sunday and has not a designated day off during the following week, it must be mutually agreed with the superintendent as to what day they have off and, if requested to work on that day, they shall be paid time and one-half (1½) with a minimum of four (4) hours. 1203.5 Payment for Work on Days Off If an employee is required to work on the day(s) mutually agreed upon as their original day(s) off, they shall be paid at the overtime rate. 1203.6 Exceptions to Time and One-half Pay (A) Notwithstanding the foregoing, however, in the event of

a major breakdown an employee may be required to work on their scheduled or designated day(s) off, for which they will be paid at straight time rate providing

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they have been given at least twenty-four (24) hours advance notice and assigned another day(s) off in the same week.

(B) When an employee wishes to change their scheduled

or designated day(s) off, they will advise their supervisor at least twenty-four (24) hours in advance and if such a change is agreed upon by the supervisor, the employee will work at straight time rate on the day(s) originally scheduled or designated off. On the other hand, if they are required to work on the alternate day(s) mutually agreed upon as their day(s) off, they shall be paid at the overtime rate.

1204 FAILURE TO NOTIFY WHEN SERVICES NOT NEEDED When an employee reports for work at their regular reporting time and the work had been discontinued or is not available for any other reason, or when an employee has not been notified one (1) hour in advance of starting time on day shift or day work hours and two (2) hours, or earlier if possible, in advance of normal starting time for all other crews and shifts, that their services are not required, the employee shall receive pay for four (4) hours at straight time. 1205 NO PYRAMIDING Overtime shall not be pyramided nor shall more than one (1) basis of calculating overtime be used to cover the same hours.

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1206 WIRE CHANGE - KRAFT MILL (A) An employee called in to put on a wire shall be paid a

minimum of six (6) hours at straight time, or time and one-half (1½) for the hours worked, whichever is the greater.

(B) An employee who is engaged in putting on a wire after

their shift is completed shall be paid at time and one-half (1½) for the hours worked beyond their regular shift.

(C) An employee who is engaged in putting on a wire

during their normally scheduled working hours will be paid time and one-half (1½) for all hours spent putting on the wire.

(D) Normal wire crew shall consist of the regular machine

crew plus on-shift reserves in the Kraft Mill and shift maintenance personnel.

1207 SUPERVISORY PREMIUM During any period that an employee replaces a salaried foreman or supervisor at the request of the Company, shall receive thirty cents (30¢) above the highest rate they are supervising. 1208 HEIGHT PAY All work performed at a height of twelve (12) meters or more above the permanent floor on scaffolding, staging or ladders will be paid at the rate of time and one half the applicable rate for each hour worked.

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Working Overtime: All work performed at a height of twelve (12) meters or more above the permanent floor on scaffolding, staging or ladders will be paid at the rate of a half time premium above their current applicable rate for each hour worked. 1209

The Union will receive on a monthly basis, and by department, an accounting of all premium hours worked from the Company.

1300 - SHIFT DIFFERENTIAL 1301 – Shift Differential that applies only to employees not covered by the 12 hour shift agreement:

A shift differential of seventy-eight cents ($0.78) per hour shall be paid for all hours worked on tour or shift work occupations between 3:00 p.m. and 7:00 a.m., but shall not apply to day workers on overtime.

1302 – Shift Differential that applies only to employees covered by the 12 hour shift agreement:

7 a.m. to 7 p.m. $0.00

7 p.m. to 7 a.m. $1.04/hour

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1303 – NOT ELIGIBLE WHEN ABSENT

Tour and shift workers absent on vacation, holidays with pay, or paid sick leave shall not be entitled to the shift differential.

1400 - SAFETY 1401 The Union agrees to co-operate with the Company to assist in any plan for the prevention and reduction of accidents. The prevention of incidents requires the constructive participation of all parties. The provisions of the Occupational Health and Safety Act and Regulations, the directives of the Industrial Safety Branch Inspectors and the Company's Fire Safety Rules shall be complied with by workers at all times. In health and safety matters requiring the attendance of a union safety representative, it will be the safety representative within the appropriate union jurisdiction that will be involved. 1402 Salaried Supervisors or Working Foremen shall instruct employees on safety in their lines of work. 1403 COVERALLS Coveralls will be made available for Yard/Utility Crew, Woodyard, Mech/Elect Techs, Tech Service and operating personnel when working in areas where the nature of the work would likely cause damage or unusual soiling of clothing.

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1500 - PAID HOLIDAYS 1501 ELIGIBILITY 1501.1 To be eligible for a Paid Holiday, an employee must be on the active payroll of the Company and fulfil the following requirements: (A) Must have been employed by the Company for thirty (30) days; (B) Must be at work on their work day preceding the holiday; (C) Must return to work as scheduled immediately following the holiday. 1501.2 (A) When a Paid Holiday occurs during an employee's

vacation period, the employee shall be entitled to a day off, with pay, at a later date, mutually agreed on, but must be taken within ninety (90) days of the Paid Holiday or the employee may elect to receive eight (8) hours straight time pay.

When a Paid Holiday occurs on a tour worker's day off, the employee shall be entitled to a day off, with pay, at a later date, mutually agreed on, but must be taken within ninety (90) days of the Paid Holiday or the employee may elect to receive eight (8) hours straight time pay.

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(B) Any employee who has been laid up by an accident, illness or other justifiable cause, having been at work sometime within the ninety (90) day period previous to the holiday, or temporarily laid off and recalled, provided they are qualified under this clause, shall receive Paid Holiday pay.

(C) When, in Management's opinion, circumstances

warrant special consideration, the ninety (90) day period will be extended.

1502 PAID HOLIDAY PERIODS It is agreed that the following Paid Holiday Periods will be observed and that wages will be paid therefore, at regular rates of pay: (A) Eight (8) Hours Pay: Canada Day - 24 hours (from 7:00 a.m., July 1

st to

7:00 a.m., July 2nd

) Boxing Day - 24 hours (from 7:00 a.m., December 26

th to

7:00 a.m., December 27th)

New Year’s Day - 24 hours (from 7:00 p.m., December 31

st

to 7:00 p.m., January 1st)

Labour Day - 24 hours (from 7:00 a.m., Monday, to 7:00 a.m., Tuesday) (B) Sixteen (16) Hours Pay:

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Christmas Holiday - 48 hours (from 7:00 a.m., December 24

th to 7:00 a.m., December 26

th)

(C) Mill Operating Through Holiday periods:

1. The Mill will operate on a continuous basis unless the Company notifies the local unions of its intention to shut down.

During the, New Year’s Day holiday, Canada Day holiday and Boxing Day holiday periods, the following will apply:

Employees required to work on such day(s) will be scheduled by following the regular work schedule. The number of employees required to work will be limited to the minimum number required to operate the Mill efficiently.

If an employee normally scheduled to work on a Statutory Holiday wishes not to do so, they may be excused from work provided a qualified volunteer can be found without additional cost to the Company.

During the Labour Day, Christmas holiday periods, the following will apply:

Employees required to work on such day(s) will be scheduled by following the regular work schedule. The number of employees required to work will be

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limited to the minimum number required to operate the Mill efficiently.

A regularly scheduled employee who chooses not to work will notify their supervisor no later than twenty (20) days in advance of the holiday. Should additional employees be required, the Company will post for the required volunteers. Preference will be given to qualified employees by departmental seniority, schedule permitting. If a qualified volunteer cannot be found, the junior person with the required skill set will be scheduled.

2. An employee scheduled to work on such holiday(s) will be paid as follows:

(a) Statutory Holiday Pay as stipulated in the Collective Agreement, plus

(b) Double time for each hour worked during the mill

holiday period, plus (c) An additional amount equal to one hour pay for

each hour worked at the rate of the job performed during the holiday.

(d) An employee who works at least one full shift

during the holiday period may take a compensating day off without pay during the calendar year at a date mutually agreed with the supervisor.

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In addition, an employee may, in advance, elect to defer accepting the amount owing them under 4(c) and have this amount paid to them in the pay period in which the compensating day off occurs. The employee must notify their supervisor, no later than twenty (20) days in advance of the holiday, of their intention to elect this pay option.

3. Employees who are not required to work on the above holidays will be paid Statutory Holiday pay as outlined in the Collective Agreement.

4. During total mill shutdowns for a Statutory Holiday

start-up procedures will be as per Appendix "E". 5. This agreement does not apply to employees who

must perform regular work during statutory holidays when the mill is not in operation.

6. Maintenance and Project Work on Statutory Holidays With the exception of the hours of the Christmas Shutdown period, from 7:00 a.m., December 24th to 7:00 a.m., December 26th, the Company will have the option of scheduling repair and maintenance or project work during statutory holiday periods, subject to the following conditions: 1. The Union will be informed in advance of the work to

be accomplished during Statutory Holiday hours.

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2. The Company will call for volunteers to provide the necessary complement of skills required for the planned jobs.

3. If sufficient tradesmen are not available on a voluntary

basis, the Company will meet with the local union involved in an attempt to resolve the problem. Failing mutual agreement, the Company will have the right to schedule the additional employees required in the reverse order of seniority.

4. Pay for tradesmen working on Statutory Holiday time

when the mill is producing end product will be as for other employees. When the mill is not producing end product, the current provisions of the Agreement will apply.

(D) Hours and Date May be Changed:

The hours and date of a Paid Holiday may be changed by mutual agreement of the signatory parties, but total hours will remain the same.

(E) Advance Notice:

Notice of holiday shutdown periods shall be posted on bulletin boards a week in advance.

(F) Employees removed from regular crews to be Core

Trainers, Unit Trainers, or work on special projects must work on their regular crew schedules for 1 week before and 1 week after a run through day to be eligible to work on that day (total three weeks) .

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Employees in these roles understand that they will only have the option to return to their regular crews if there is no need for training, project support and other critical time driven business needs in these periods.

1503 ADDITIONAL FLOATING (NON- SHUTDOWN) HOLIDAYS 1503.1 Eligibility, General: (A) Each employee who has completed not less than sixty

(60) days of continuous service will be eligible for one (1) floating holiday;

(B) Each employee who has completed not less than

ninety (90) days of continuous service will be eligible for a second floating holiday;

(C) Each employee who has completed not less than one

hundred and eighty (180) days of continuous service will be eligible for a third and fourth floating holiday.

(D) Each employee who has completed not less than two

hundred and ten (210) days of continuous service will be eligible for a fifth and sixth floating holiday.

(E) To be eligible for a floating holiday, an employee must be at work on the scheduled work day preceding the floating holiday and the scheduled work day immediately following the floating holiday.

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(F) It is understood that no more than six (6) floating holidays will be paid to any person in any calendar year.

(G) In order to qualify for the above floating holidays, the

employee must have been actively at work during the calendar year.

1503.2 Scheduling: (A) All floating holidays must be scheduled and approved

no later than December 1st in any calendar year. (B) The floating holiday must be taken for regular work

days or shifts and not for scheduled days off or for Paid Holidays.

(C) It is understood that except under special

circumstances, adequate time will be given to permit the supervisor to make the required arrangements.

(D) Permission absences will not be granted until all of the

employee's floating holiday entitlement has been exhausted or scheduled. This excludes employees requesting leave of absence for Union business or family medical reasons.

1503.3 Payment: (A) The floating holiday will not be paid for unless the

actual time off is taken. (B) Exception: Employees eligible for floating holidays who

quit, resign or take early retirement with a minimum of

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seven (7) days notice, or are laid off, terminated or retire, will be entitled to receive payment for any remaining floating holidays.

(C) Notwithstanding any other provisions of this

Agreement that may be to the contrary, an employee who has been engaged specifically as a vacation replacement and whose employment is terminated before October 1st will not be eligible for floating holidays.

1600 - VACATION PAY

1601 ELIGIBILITY Every employee covered by the Agreement who has completed the required years of continuous service shall be entitled to a vacation with pay at their usual rate, based upon the following schedule: 1601.1 After one (1) year of continuous service, two (2) weeks. 1601.2 After five (5) years of continuous service, three (3) weeks, provided that the third week will not be granted consecu-tively unless mutually agreed upon so as not to interfere with production.

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1601.3 After ten (10) years of continuous service, four (4) weeks, provided that four (4) consecutive weeks of vacation may be taken between the period from 1st of January to 31st of May, or 1st of October to 31st of December. All dates inclusive unless otherwise approved by the Company. 1601.4 After seventeen (17) years of continuous service, five (5) weeks, provided the five (5) consecutive weeks of vacation may be taken between the period from the 1st of January to 31st of May, or 1st of October to 31st of December. All dates inclusive unless otherwise approved by the Company. 1601.5 After twenty-three (23) years of continuous service, six (6) weeks, provided the six (6) consecutive weeks of vacation may be taken between the period from the 1st of January to 31st of May or 1st of October to 31st of December. All dates inclusive unless otherwise approved by the Company. 1601.6 After thirty (30) years of continuous service, seven (7) weeks, provided the seven (7) consecutive weeks of vacation may be taken between the period from the 1st of January to 31st of May or 1st of October to 31st of December. All dates inclusive unless otherwise approved by the Company.

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1601.7 Employees shall receive an additional four (4) hours pay at their regular rate for each week of vacation taken during the period November 1 to April 30 except for the month of December. 1601.8 - Vacation Entitlement for Employees Retiring: Employees actively at work who retire will receive vacation entitlement on the basis of not less than the entitlement they would have received in the calendar year had they reached their anniversary date before retirement. 1601.9 After twenty-five (25) years of continuous service, upon attainment of the following ages, receive the following paid additional vacation in the calendar year in which they reach: Supplementary Vacation 60 years of age - 1 additional week 61 years of age - 2 additional weeks 62 years of age - 3 additional weeks 63 years of age - 4 additional weeks 64 years of age - 5 additional weeks 1602 CONDITIONS OF PAYMENT Vacation with pay will be based on two point four percent (2.4%) of the previous year's gross earnings for each week of vacation, or forty-eight (48) hours at their regular rate, whichever is the greater. Vacation with pay will not be paid for absence periods due to discipline. In the event of illness or non-compensable

39

accident, employees must have worked a minimum of seven hundred and fifty (750) hours in that year in order to qualify for vacation benefits. All hours paid for vacation, paid holidays and floating holidays, shall be counted when computing the seven hundred and fifty (750) hours to determine vacation eligibility. In such cases, vacation pay will be based on two point four percent (2.4%) of total earnings for each week of vacation entitlement, even though the two point four percent (2.4%) is less than the equivalent forty-eight (48) hours pay at straight time rate. Employees with less than seven hundred and fifty (750) hours may be given the option of taking their regular vacation entitlement with the reduced vacation pay or they may lump their vacation pay and take a reduced number of weeks. In all instances, employees must take off a minimum of two (2) weeks. Employees should indicate the number of weeks they intend to take off at the time this option is presented. 1602.1 Summer Students Summer students will be paid vacation pay on the basis of 4.8% x gross earnings.

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Terminated Employees, Less Than One (1) Year of Service When an employee leaves the Company (terminated, resigns, etc.) with less than one (1) year of service they will receive vacation pay calculated at 4.8% x gross earnings for time worked. Terminated Employees, Greater Than One (1) Year of Service Vacation pay will be calculated on the following basis: For the first year of employment, the greater of 4.8% x gross earnings or ninety-six (96) hours pay. For subsequent years 2.4% x gross earnings x number of weeks entitlement. This calculation method will apply to all gross earnings up to the date employment ends. 1603 VACATION WEEK AND YEAR Vacations of a full week will start on Sunday and are effec-tive in the calendar year. 1604 VACATION PERIODS NOT TO BE CONSECUTIVE Vacation time that is granted for one year may not be taken immediately before or after vacation for any other year, unless approved by the Company.

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1700 - BEREAVEMENT LEAVE 1701 ELIGIBILITY Each employee who has been on the payroll for at least thirty (30) calendar days is entitled to be paid bereavement leave as set forth hereunder. 1702 CONDITION OF PAYMENT When death occurs to an employee's spouse, children or step-child, the employee will be granted a leave of absence and will be paid for eight (8) hours at their regular straight time rate for up to five (5) consecutive scheduled working days lost. The bereavement leave will be taken at the beginning of the date of death or the time of the funeral service. When death occurs to an employee's brother, sister, mother, father, mother-in-law, father-in-law, sister-in-law, brother-in-law, step-mother, step-father, step-brother, step-sister, grandmother, grandfather, son-in-law, daughter-in-law, or grandchild, the employee will be granted a leave of absence and will be paid for eight (8) hours at their regular straight time rate for up to three (3) consecutive scheduled working days lost. The bereavement leave will be taken at the beginning of the date of death or the time of the funeral service. Pay will be at straight time even if a bereavement leave day falls on a Sunday. The regular straight time rate means the straight time rate for the job at which the employee would have worked had they not been on bereavement leave.

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An employee shall not be entitled to that part of bereavement leave or compassionate leave that is affected by payment for paid holidays, floating holidays, Weekly Indemnity, Long Term Disability, Workplace Safety and Insurance Board benefits or by Lay-off. If death occurs during an employee's vacation, the provided for days will be added to vacation time or at a time mutually agreed to. 1800 - JURY DUTY Upon presentation of a voucher from the Clerk of the Court showing fees received for serving on a jury or reporting for jury roll call, or as a crown witness or subpoenaed defense witness in a Court of Law, an employee shall be paid the difference between the pay received for such jury duty or reporting for jury roll call or crown witness or defense witness and their regular pay, subject to the following conditions: (A) The difference between such fees received (not

including meals, lodging and mileage allowances as allotted by the court) and the normal wages for regular straight-time eight (8) hour working days falling within their normal work week for the duration of the jury duty or jury roll call, or crown or defense witness.

(B) Employees scheduled to work the midnight shift or tour immediately prior to their first and second jury roll call, crown or defense witness, or jury duty in one of the assizes will be excused upon request and their regular rate will be paid.

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1900 - DEFINITION OF STRAIGHT TIME RATE

The definition of straight time rate where it is applied in the case of: (A) Jury Duty (B) Bereavement Leave (C) Floating Holidays (D) Paid Holidays (E) Courses is as follows: Regular straight time rate means straight time rate of the job at which the employee would have been scheduled for those shifts had they not been on (A), (B), (C), (D), or (E) above.

2000 - LICENCE RENEWALS

The Company agrees to pay the full cost of necessary licences and renewals required by government agencies for work related activities (regular driver’s licenses excluded). 2100 - METRIFICATION During the term of this Agreement, the Company will pay 50% of actual cost of metric tools, if required by the Company.

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2200 - RULES OF CONDUCT The Rules of Conduct are appended to this Agreement as Appendix "B" and form a part of it.

2300 - RETIREMENT INCOME BENEFITS

2301 The parties to this Agreement agree that there will be no change, suspension or discontinuance of the Retirement Income program, as summarized, herein, until August 31, 2018, except through mutual agreement by the parties to this Agreement or through Government legislation. If, at any time, it shall be necessary or appropriate to make any revision in the Retirement Income Plan (1981) (the "Plan") to obtain or retain any acceptance or approval by tax authorities or to comply with any applicable law, either party may negotiate appropriate adjustments, providing however that the pension benefits accrued pursuant to this Agreement prior to the date of adjustment are not reduced. 2302 The parties to this Agreement further agree that the Terms and Conditions of the Agreements Covering Retirement Income Benefits (except as provided in Section 2313) between the parties prior to September 1, 1987 will continue to apply to the determination and payment of benefits in respect of former employees of the Company who retired, died, or terminated employment for any other reason prior to September 1, 1987 in accordance with the

45

Agreement that was in force at the time each such individual left the employ of the Company. 2303 The Retirement Income Plan (1981), as amended to September 1, 2004, forms part of this Agreement. A description of the Plan is printed in this Agreement for information purposes only. Any questions of administration or interpretation of the Plan will be decided based on the rules of the full Plan text. 2304 There will be 3 Union representatives on the Joint Pension Board provided the Joint Pension Board shall not have authority to make changes in the Plan involving additional cost to either the employees or the Company. Meetings will be held each year including one at which the actuarial valuation and other financial and statistical reports will be presented. The Company will provide annually to the Joint Pension Board the following information: (a) estimated total annual employee contributions; (b) estimated total annual Company contributions; (c) list of pensioners retired during the previous year

and amount of pensions for each; (d) list of employees who entered the Plan during the previous year; (e) list of separations from the Plan during the previous year; (f) a list of total pension credits accrued by each

individual member of the signatory unions.

46

2305 All employees covered by the Collective Agreement shall be eligible and shall be required to join the Plan on the January 1st next following the date on which they have completed one year of service, provided that they are not then 65 years of age or over. Each eligible employee will be required to complete an enrolment form provided by the Company for that purpose. 2306 NORMAL RETIREMENT DATE The normal retirement date for all employees covered under the Plan will be the first day of the month next following the date on which they become 65 years of age. 2307 EARNINGS Effective September 1, 1993 an employee's "Earnings" for all purposes of the Plan will be at the rate of their basic annual remuneration as at the September 1st coincident with or immediately preceding the date or month for which a determination of Earnings is required, exclusive of overtime, commissions, bonuses, or gifts, received from and determined by the Company. 2308 NORMAL RETIREMENT BENEFITS Each member of the Plan who is in the active employment of the Company at September 1, 2004 or who is in receipt of benefits under the Company's Long Term Disability Insurance Plan at that date, and each employee who becomes a member after September 1, 2004 who subsequently retires at their normal retirement date under the Plan will receive an annual retirement income determined as follows:

47

1.65% of their Final Average Earnings x Years of

Pensionable Service Effective September 1, 2005, each member of the Plan who is in the active employment of the Company at September 1, 2005 or who is in receipt of benefits under the Company’s Long Term Disability Insurance Plan at that date, and each employee who becomes a member after September 1, 2005 who subsequently retires at their normal retirement date under the Plan will receive an annual retirement income determined as follows:

1.70% of their Final Average Earnings x Years of Pensionable Service

Effective September 1, 2009, each member of the Plan who is in the active employment of the Company at September 1, 2009 or who is in receipt of benefits under the Company’s Long Term Disability Insurance Plan at that date, and each employee who becomes a member after September 1, 2009 who subsequently retires at their normal retirement date under the Plan will receive an annual retirement income determined as follows:

1.75% of their Final Average Earnings x Years of Pensionable Service

This pension is inclusive of the pension, if any, payable to the member by the Standard Life Company under the Former Plan.

48

For purposes of this Section, (i) "Final Average Earnings" means (a) divided by (b) as follows: (a) The sum of the member's "Monthly Earnings"

rates in respect of the sixty (60) consecutive months (or such lesser period as may correspond to their entire period of continuous service) immediately prior to their retirement date. For a given month, "Monthly Earnings" will equal one-twelfth (1/12) of the member's annualized Earnings rate, as defined in Section 2307.

divided by: (b) Five (5), or such lesser number of years and

fractions thereof that correspond to their entire period of continuous service.

2309 EARLY RETIREMENT

a) Effective September 1, 1998, any member in service who elects to retire early upon the attainment of age 58 or after, provided they have accumulated at least 20 years continuous service, will receive, commencing on their early retirement date, a retirement income benefit equal to the retirement income benefit they had accumulated to such early retirement date without actuarial reduction subject to minimum reductions required by Revenue Canada. Such employee will also be provided with a bridging supplement, commencing on their early retirement date, equal to thirty dollars ($30.00) per month for each full year of

49

continuous service (to a maximum of 30 years), reducing to fifteen dollars ($15.00) per month for each year of continuous service (to a maximum of 30 years) on the first of the month next following the employee's 60th birthday. If such employee retires early on or after age 60 with at least 20 years of service, the bridging supplement will equal fifteen dollars ($15.00) per month for each year of continuous service to a maximum of 30 years. The amount of fifteen dollars ($15.00) referred to above will be increased to sixteen dollars ($16.00) in the case of retirees who retire on or after January 1, 1999. The bridging supplement will reduce to zero on the first day of the month following the member's 65th birthday or upon their prior death.

The amount of thirty dollars ($30.00) referred to above will be increased to thirty–two dollars ($32.00) in the case of retirees who retire on or after January 1, 1999, and the amount of thirty-two ($32.00) referred to above, will be increased to thirty-three ($33.00) in the case of retirees who retire on or after January 1, 2002.

b) A member who has not attained age 58 or over, but

who has accumulated at least 20 years of continuous service may, with the consent of the Company, retire on the first day of any month during the 10 year period immediately preceding their normal retirement date and will receive, commencing on early retirement date, a retirement income benefit equal to the normal retirement income benefit they had accumulated to such retirement date, adjusted by applications thereto

50

of an appropriate factor based on their attained age in accordance with the following table:

Attained Age Adjustment Factor

57 94% 56 88% 55 82%

Effective May 1, 2009, the pension rules will be modified such that an active employee retiring at age 57 or more with at least 20 years of continuous service will be entitled to an unreduced pension and bridge benefit , subject to the minimum reductions imposed under the regulations of the Income Tax Act (Rule of 80).

Such member will also be provided with a bridging supplement commencing on their early retirement date equal to thirty dollars ($30.00) per month for each full year of continuous service with the Company to a maximum of 30 years, reducing to fifteen dollars ($15.00) per month for each full year of continuous service (to a maximum of 30 years) on the first of the month next following the employee's 60th birthday. The amount of fifteen dollars ($15.00) referred to above will be increased to sixteen ($16.00) dollars in the case of retirees who retire on or after January 1, 1999. The bridging supplement will reduce to zero on the first day of the month next following the member's 65th birthday, or upon their prior death. The amount of thirty dollars ($30.00) referred to above will be increased to thirty-two dollars ($32.00) in the case of

51

retirees who retire on or after January 1, 1999, and the amount of thirty-two ($32.00) dollars referred to above will be increased to thirty-three ($33.00) dollars in the case of retirees who retire on or after January 1, 2002. The bridging supplements referred to above will be reduced by 2/3 of 1% for each month (8% per annum) by which such early retirement precedes the attainment of age 58. The retirement income benefit payable under the Standard Life Insurance Group annuity policy to a member who retires early as in (a) or (b) above will be supplemented by this Plan so that they will receive the same proportion of their retirement income benefit under the Former Plan as they will receive under this Plan. (c) A member who has accumulated less than 20 years of

service may, with the consent of the Company, retire on the first day of any month during the 10-year period immediately preceding their normal retirement date and will receive, commencing on their early retirement date, a retirement income benefit equal to the actuarial equivalent of the normal retirement income benefit they had accumulated to such retirement date.

2310 SPECIAL EARLY RETIREMENT An employee who has attained age 57 and who suffers a proven and certified medical disability but is not eligible to receive benefits under the Company's Long Term Disability Plan, or who has attained age 57 and is displaced as a result of a workforce reduction, may be granted the right to retire early on the first day of any month prior to age 65 and shall be entitled to receive their accrued normal retirement

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income benefits without actuarial reduction. This benefit will also be supplemented from this Plan to place the pension payable from Standard Life under the Former Plan on the same unreduced basis as is provided under this Plan. Effective September 1, 1998 each such member who, at the date of their special early retirement, has completed at least 20 years of continuous service will also receive a bridging supplement commencing on their early retirement date equal to thirty dollars ($30.00) per month for each full year of continuous service with the Company to a maximum of 30 years, reducing to fifteen dollars ($15.00) per month for each full year of continuous service (to a maximum of 30 years) on the first of the month next following the employee's 60th birthday. The amount of fifteen ($15.00) dollars referred to above will be increased to sixteen dollars ($16.00) in the case of retirees who retire on or after January 1, 1999. The bridging supplement will reduce to zero on the first day of the month next following the member's 65th birthday, or upon their prior death. The amount of thirty dollars ($30.00) referred to above will be increased to thirty-two dollars ($32.00) in the case of retirees who retire on or after January 1, 1999 and the amount of thirty-two ($32.00) dollars referred to above will be increased to thirty-three ($33.00) dollars in the case of retirees who retire on or after January 1, 2002. The bridging supplements referred to above will be reduced by 2/3 of 1% for each month (8% per annum) by which such early retirement precedes the attainment of age 58.

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2311 PENSIONABLE SERVICE For purposes of this Section 2300 "Pensionable Service" means years and whole months of continuous service with the Company while a contributing member of the Plan, subject to the following schedule: Hours Worked In Pensionable Service Granted Plan Year ** For That Plan Year 2080 or more 12 months 1905 to 2079 11 months 1730 to 1904 10 months 1555 to 1729 9 months 1380 to 1554 8 months 1205 to 1379 7 months 1030 to 1204 6 months 855 to 1029 5 months 680 to 854 4 months 505 to 679 3 months 330 to 504 2 months 155 to 329 1 month ** - separate graded scales where regular work week is other than 40 hours. 2312 EMPLOYEE CONTRIBUTIONS Effective September 1, 2004 an eligible employee who is a member of the Plan will contribute each year, an amount equal to: Effective the first pay period following April 16, 2005, 6% of Earnings

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Effective September 1, 2007, 6.5% of Earnings Effective September 1, 2008, 7.0% of Earnings Effective September 1, 2009, 7.5% of Earnings Earnings are defined as the rate of basic annual remuneration as at September 1

st coincident with or

immediately preceding the date or month for which a determination of Earnings is required. Contributions may not be withdrawn while the member remains in the employment of the Company. If the number of hours in a particular pay period for which a member is compensated at their basic rate of pay is less than 25 hours, the Company will not deduct their contribution instalment otherwise required under the terms of the Plan. The amount of such contribution not deducted will be deducted from their pay in subsequent payroll periods in the same Plan Year unless the employee notifies the Payroll Office within a reasonable time that they wish to forego the missed contributions and related pensionable service. If the amount of such instalment in any payroll period is greater than the member's pay for the period, the Company reserves the right to defer the deduction of such amount from wages to subsequent payroll periods in the same Plan Year.

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2313 Pension Plan Modifications as of April 19, 2005 A Member who retired from active service of the Company prior to or coincident with the Date of the Post-Retirement Adjustment and who commenced an immediate retirement income benefit on the Member’s retirement date shall receive an increase on each Date of Post-Retirement Adjustment equal to the Member’s annual retirement income benefit multiplied by 50% of the percentage increase in the Consumer Price Index during the twelve-month period that ends with October of the year preceding the Date of the Post-Retirement Adjustment, subject to a maximum increase of 5%. The amount of first increase shall be pro-rated if the Member’s retirement income benefit had commenced within twelve months prior to the Effective Date of the Post-Retirement Adjustment. The Member’s retirement income benefit shall be increased on each date as set forth below:

Date of the Post-Retirement Adjustment

January 1, 2005 January 1, 2007 January 1, 2009 January 1, 2011 January 1, 2013

The pension subject to the increase is the Member’s pension which is payable from the Plan on and after the Date of the Post-Retirement Adjustment. The pension increase shall exclude any temporary bridging supplement.

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The Pension Increases will be payable on the same form of payment that applies to the member's pension already in the course of payment. For purposes of this section, "Consumer Price Index" means the Canada all-items Consumer Price Index (1992 = 100) as published by Statistics Canada. If, by reason of law or guideline established by a Government Body, the Company is required to provide increases in pension for retired employees, the Company will only be required to increase pensions under this section such that the resulting pension equals the greater of: (a) The pension benefit determined by including the

Pension Increases provided under the paragraph above or

(b) The pension benefit determined by including the

increases required under such law or guideline.

2314 DISABILITY ACCRUAL While receiving benefits under the Company's Long Term Disability Plan, a member will continue to accrue Pensionable Service and continuous service. During such a period of disability accrual, the member will not be required or permitted to contribute to the Plan. Their earnings as of each September 1st that falls in such period of disability accrual will equal their rate of Earnings in effect at the September 1st immediately prior to the date they became eligible to receive payments under the Long Term Disability Plan, subject to any adjustments made prior to

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September 1, 2014, and subject to the following further adjustments. Each member who is and has been in receipt of benefits under the Company’s Long Term Disability Plan for at least four (4) continuous years on each September 1

st on or prior

to September 1, 2017 will have the rate of Earnings recomputed with effect on each of those dates to reflect the general wage increases on each September 1

st up to and

including September 1, 2017. Employees who qualify for Long Term Disability on or after January 1, 2000, and who retire will have their pension calculated based on the greater of:

Their rate at the time of disability in the Collective Agreement

Or

The base rate in the Mill (Labourer rate) in each of the years used to calculate their pension.

2315 BENEFITS ON DEATH PRIOR TO RETIREMENT (a) In the event of death before retirement on or after

January 1, 1988, the deceased member's beneficiary will receive a lump sum benefit equal to the sum of (i) plus (ii).

(i) In respect of Pensionable Service prior to January

1, 1987, a refund of the member's required contributions made to the Plan prior to December 31, 1986, with Interest; plus

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(ii) In respect of Pensionable Service on and after January 1, 1987, the Commuted Value of the pension benefit earned for Pensionable Service on and after January 1, 1987.

(b) If the member had previously terminated their

employment prior to January 1, 1988, and left their contributions plus interest on deposit in the Plan, the beneficiary will receive the sum of such required contributions which were left in the Plan with interest. If the member had previously terminated their employment on or after January 1, 1988 and left their contributions plus interest on deposit in the Plan, the beneficiary will receive the death benefit as determined under paragraph (a) above.

(c) If the member dies while on postponed retirement, they

will, for the purpose of this Plan, be deemed to have retired on the first day of the month in which their death occurs, and retirement benefits will be paid to their beneficiary or joint annuitant, if any, in accordance with the normal or optional form of benefit elected by the member.

2316 INTEREST The rate of Interest under this Plan shall be equal to 4.5% per annum from January 1, 1981 to December 31, 1986, and 6.5% per annum thereafter or at such other rate as is established as the minimum required for continued registration of the Plan with the regulatory authorities. Effective January 1, 1987, Interest shall be credited from

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the end of the month in which each employee contribution is made and shall be compounded annually to the beginning of the month in which payment is made or in which a determination is required. 2317 BENEFITS ON DEATH AFTER RETIREMENT Retirement Income Benefits are payable for the remaining lifetime of a retired member with the guarantee that, if the member dies before a total of sixty (60) monthly benefit payments have been made, the balance of such payments will be continued to their beneficiary or provide for commutation of the benefits for the balance of the guarantee period to the estate. Prior to their date of retirement, a member may, however elect to have their retirement income benefit paid in optional form and in such event, the benefits, if any, payable following the death of the member will be determined in accordance with the terms and conditions of such optional form. Optional forms available under the Plan include: (a) a lifetime benefit with no guarantee, which provides an

income somewhat higher than the normal benefits described above for the member's lifetime. Payments cease upon death.

(b) a lifetime benefit with 120 or 180 month guarantee,

which provides an income somewhat lower than the normal benefits described above. If the member's death occurs within the guarantee period, payments will continue to be made to their beneficiary for the balance of the 120 or 180 month period.

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(c) a joint and survivor option, which provides a reduced pension payable for the member's life. Upon the member's death their pension will continue in whole or in part, as they may elect, to their named spouse or beneficiary.

(d) a level income option which may be elected only in the

case of early retirement. This option provides an increased pension during the period before Canada Pension Plan and Old Age Security benefits commence and a reduced pension after these benefits commence in order to provide a reasonably level pension from all sources throughout retirement. This option is available only for members selecting a single life form of pension. Optional forms of pension will be paid in the actuarial equivalent of the normal form of pension.

(e) In the event the member retires on or after January 1,

1988, and has a spouse at the date of retirement, the automatic form of payment will provide that, in the event the member predeceases their spouse, 60% of their pension will continue to the spouse for the remainder of their lifetime. The member's pension will be actuarially reduced at the date of retirement to provide for this spouse pension. An alternative form of payment may be elected if both spouses agree to the change in writing.

2318 BENEFITS ON TERMINATION OF EMPLOYMENT (a) On termination of employment prior to January 1,

1988, a member may elect to receive a lump sum

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refund of their required contributions to the Plan, with Interest, or they may elect to accept a deferred retirement income benefit commencing at their normal retirement date. Such deferred retirement income benefit will be in the amount which can be provided by the sum of the member's own required contributions to the Plan, plus a vested portion of the remainder of the retirement income benefit accrued or granted to them to the date of their termination of employment. In this regard, the vested portion of such remaining retirement income benefit will be equal to 50% after five (5) years for participation in the Plan and the Former Plan, scaling up by 10% per year to 100% after ten (10) years of such participation.

They will also be entitled to any benefit payable on termination of employment by The Standard Life Insurance Company under the Former Plan.

The vesting and locking-in provisions of the Pension Benefits Act of Ontario will, however, apply at all times if termination of employment occurs after a member has completed ten (10) years of continuous service and has attained age 45.

(b) On termination of employment on or after January 1,

1988, the member will receive the following benefits: (i) In respect of Pensionable Service prior to January

1, 1987, the following rules will apply:

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The member may elect to receive a lump sum refund of their required contributions to the Plan made prior to January 1, 1987, with Interest, or they may elect to leave their contributions in the Plan in exchange for a deferred retirement income benefit commencing at their normal retirement date. Such deferred retirement income benefit will be in the amount which can be provided by the sum of the member's own required contributions to the Plan made during such period, plus a vested portion of the remainder of the retirement income benefit accrued or granted to them for Pensionable Service prior to January 1, 1987. In this regard, the vested portion of such remaining retirement income benefit will be equal to 50% after five (5) years for participation in the Plan and the Former Plan, scaling up by 10% per year to 100% after ten (10) years of such participation.

They will also be entitled to any benefit payable on termination of employment by Manulife Insurance Company under the Former Plan.

The vesting and locking-in provisions of the Pension Benefits Act of Ontario will, however, apply at all times if termination of employment occurs after a member has completed ten (10) years of continuous service and has attained age 45.

(ii) In respect of Pensionable Service on and after

January 1, 1987, the retirement income benefit

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accrued on and after January 1, 1987 will be fully vested after completion of two years of Pensionable Service including Pensionable Service prior to January 1, 1987. If the member terminates before completing two years of Pensionable Service, they will receive a refund of their contributions plus Interest made after January 1, 1987. If the member terminates after completing two or more years of Pensionable Service, they will be required to leave their contributions on deposit in the Plan in exchange for a pension commencing at their normal retirement age equal to the retirement income benefit accrued for Pensionable Service after January 1, 1987.

In the event the member dies, terminates employment or retires on or after January 1, 1988 after completing two or more years of Pensionable Service, it is guaranteed that no more than 50% of the Commuted Value of the benefits accrued for Pensionable Service on and after January 1, 1987 or granted on or after January 1, 1987 will be financed by the member's required contributions plus Interest made on and after January 1, 1987.

If the member's required contributions plus Interest made on and after January 1, 1987 exceed 50% of the Commuted Value of such pension, the excess will, at the member's option, be either:

(a) refunded to the member; or

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(b) used to increase the benefits payable under the Plan. (iii) For purposes of this Plan, "Commuted Value"

means the lump sum actuarial equivalent value of the retirement income benefit under consideration, determined according to the rules and regulations of the Pension Benefits Act of Ontario.

2319 PORTABILITY If a member terminates employment on or after January 1, 1988 and prior to their attainment of age 55, they may elect, provided such election is filed in a form satisfactory to the Company, within 60 days of their date of termination, to transfer the Commuted Value of their vested pension under the Plan to either: (a) the pension plan of their next employer, if such

employer will accept the transfer; or (b) to a personal locked-in registered retirement savings

plan, as defined in the rules and regulations under the Pension Benefits Act of Ontario; or

(c) purchase a deferred life annuity from an insurance company.

Notwithstanding the foregoing, such transfer or annuity purchase may be limited to comply with the solvency requirements under the Pension Benefits Act of Ontario.

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Effective the first day of the month following ratification of the collective agreement, active employees participating in Domtar Dryden Operations pension plans that are transferred within the Company, with no interruption in employment, will be eligible for pension portability. For an employee who has been laid off for a period of less than twelve (12) consecutive months, the Company will proceed with their pension transfer if they have not received their severance pay or withdrawn their pension entitlement. In cases where the former mill and the new mill have different registered pension plans, the following will apply:

- The employee will enter into the pension plan of the new mill. This plan will recognize the service completed under the former pension plan for purposes of eligibility for ancillary benefits (early retirement and bridge benefit).

- The employee will stop accruing years of credited service in the former plan. Years of service and pensionable earnings at the new mill will be recognized in the former plan for purposes of eligibility for ancillary benefits and calculation of final average earnings.

Such employee will therefore have pension entitlements in two different registered pension plans.

2320 GENERAL PROVISIONS The Company shall have the sole right to determine the Funding Agency and the method of funding under the Plan.

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The Company will keep the Joint Pension Board informed of any changes. The Company agrees to include union representation in pension discussions for employees considering retirement. The Company agrees to continue to share pertinent funding information with the Union. 2400 - GROUP WELFARE INSURANCES 2401 The following insurance plans will form part of this Agree-ment: 2402 - Weekly Indemnity Insurance 2403 - Hospitalization and Medical Care Insurances 2404 - Group Life Insurance 2405 - Additional Floating (Non-Shutdown) Holidays and Dismemberment 2406 - Long Term Disability Insurance 2407 - Dental Insurance 2408 - Extended Health Care Insurances 2409 - Vision Care 2410 - Joint Benefit Committee 2411 - Retiree surviving spouse health care coverage 2412 - Children with Disabilities New employees, after meeting eligibility requirements, must join these plans.

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2402 WEEKLY INDEMNITY INSURANCE The Company will pay the entire cost of the Weekly Indemnity Benefit Plan plus the cost of required medical forms. The Weekly Indemnity Benefit Plan shall be administered in accordance with the terms of the insurance policy and the contract shall include the following governing provisions: (a) Eligibility

All eligible employees will be enrolled in the Weekly Indemnity Benefit Plan. Eligibility requirements are as follows:

Permanent employees are eligible on the first day of the month following the completion of three (3) months of continuous service.

Spare Board employee(s) will become eligible on the first day of the month following completion of a three (3) month period of employment, provided that during the three (3) month period they have worked at least fifty-seven (57) days and have not been laid off for more than thirty (30) successive days.

(b) Effective Date of Coverage The coverage of an employee who became eligible to join the Plan will commence on the first day of the month following their completion of the eligibility requirements provided they are actively at work on that day, if an employee is absent due to disability,

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coverage will commence upon return to active full-time employment.

Any present or future eligible employee absent from work due to lay-off or authorized leave of absence on the day their insurance is due to commence will be enrolled:

- If absence is due to lay-off - upon recall and reporting to work; - If absence is due to authorized leave of absence – upon return to regular employment. (c) Commencement of Benefit Payments:

Benefits under the Weekly Indemnity Benefit Plan shall commence on the first day of absence due to non-compensable accident and on the earlier of the fourth day of absence or the loss of twenty-four regularly scheduled hours, due to illness. The employee must consult a licensed doctor of medicine during the first three (3) days of absence. Otherwise, the first day of absence will be established as being two (2) days prior to the date that the doctor was consulted. However, if the employee is hospitalized during the first fourteen (14) days of a continuous period of absence, benefits will commence from the first day of absence provided the employee was continuously disabled from the same or related disability from the first day of absence to the date of hospitalization, the first day of absence being established as indicated in the preceding sentence.

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(d) Definition of Disability: Disability shall mean when an insured employee is wholly and continuously disabled and prevented from performing the duties pertaining to their occupation because of injuries, sickness or disease and provided that the employee is under the regular care of a licensed doctor of medicine during any period of disability for which claim is made.

(e) Any employee on Weekly Indemnity who is determined

qualified by a doctor as fit for modified work and no such work is available shall remain on Weekly Indemnity Plan benefits. When assigned modified work, they will be paid the rate of the job to which they are assigned or card rate, whichever is greater.

(f) Amount of Benefit:

The amount of benefit shall be seventy per cent (70%) of an employee's weekly pay. An hourly employee's weekly pay shall be determined by multiplying the rate for the employee's permanent job classification at the time disability commenced by forty (40) hours for a day worker and forty-two (42) hours for a tour worker. (The daily rate of payment for each eligible calendar day of benefit shall be one-seventh (1/7th) of the weekly amount of benefit.) There shall be no maximum dollar limit.

Benefits under this Plan will be reduced by the primary amount of benefit received under the disability provisions of the Canada or Quebec Pension Plans or similar provision in any other government plans for

70

disability for which the employee is receiving an amount of disability benefit under this Plan, except for war disability pensions and Workplace Safety and Insurance Board disability pensions.

(g) Benefit Period: Benefits under the Weekly Indemnity Benefit Plan will be payable up to a maximum of fifty-two (52) weeks. An amount of disability benefit under the Plan shall not be paid in the event the absence is a result of pregnancy-related disabilities when an employee is on pregnancy leave of absence or could be placed on such leave by the Company, in accordance with the pregnancy leave provisions of any relevant provincial or federal legislation. An amount of benefit will not be paid for those days for which an employee is eligible to receive holiday pay, vacation pay, or more than one half day's regular pay from the Company.

No employee may draw vacation pay in lieu of taking their vacation. However, if an employee is absent from work because of illness or accident at the end of a calendar year and has not exhausted their total vacation entitlement, the remaining day(s) of vacation will be carried over to the next year. Vacation pay for such days of vacation shall be equal to the pay they would have received had they taken time off before year-end.

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Such deferred vacation must commence within thirty (30) days of return to active employment.

For employees who fail to qualify for pregnancy leave of absence because of failure to meet the length of service requirements in the relevant provincial or federal law, any leave of absence agreed upon by the employer and employee will be considered a normal leave of absence for legitimate personal reasons.

Exception -- Weekly Indemnity Benefits limited to four (4) weeks when an employee is under the care of a chiropractor.

(h) Cessation of Benefits: Benefits shall cease upon the earlier of any one of the following: 1. When the benefit period has expired for the particular disability or pregnancy; 2. When the employee ceases to be disabled as defined

under the section entitled "Definition of Disability"; 3. When the employee returns to work; 4. The date the employee is certified capable of returning

to work by a licensed doctor of medicine; 5. When the employee retires; 6. When the employee terminates their employment,

except for pregnancy as described under the section entitled "Benefit Period".

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(i) Recurrence of Disability from the Same or Related Cause:

If an employee who has returned to active full-time work with the Company is disabled from the same disability as previously or from a related cause within thirty (30) calendar days of such return, the recurrence will be treated as the same period of disability. If such recurrence should occur after thirty (30) calendar days, the second period of disability will be treated as a new period of disability.

If an employee receives benefit payments for a particular disability under the Long Term Disability Plan, they will not be eligible again for benefits under the Weekly Indemnity Plan for such disability or a related cause unless the disability concerned is classed as a new disability according to section (H) of the Long Term Disability Plan.

(j) Lay-Off:

If employees are laid off, the following conditions shall pertain to disability benefits under the Weekly Indemnity Benefit Plan:

i) If an employee is already receiving Weekly

Indemnity Benefits when lay-off occurs, benefits will continue provided that the employee remains disabled and verifies this by providing evidence satisfactory to the Insurance Company.

ii) If after lay-off occurs an employee makes a claim for Weekly Indemnity benefits for a disability which commenced prior to lay-off, such claim will be

73

eligible provided that the employee can establish to the Insurance Company's satisfaction that the disability commenced prior to lay-off and absence due to such disability was continuous until the date of lay-off. Benefits will continue after the date of lay-off provided the employee remains disabled and verifies this by providing evidence satisfactory to the Insurance Company.

(k) Periods of Disability Which Are Not Covered by the Weekly Indemnity Benefit Plan: Any periods of disability that arise as a result of the following will not be covered by this Weekly Indemnity Benefit Plan:

i) Any compensable disability; ii) Any injury or illness resulting from insurrection or

war, whether war is declared or not, or from participation in riot or civil commotion.

If an employee covered by Weekly Indemnity suffers a disability which is in dispute with the Workplace Safety and Insurance Board, Weekly Indemnity payments will be made retroactively if requested by the employee and provided they have been off work for at least one (1) month due to the disability without the Workplace Safety and Insurance Board having accepted the claim and providing the employee is subject to the same rules and regulations covering the Weekly Indemnity Plan. If the Workplace Safety and Insurance Board claim is subsequently established, the employee will then repay the Weekly Indemnity payment(s) received to the appropriate fund or insurance company.

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(l) Physical Examination:

The Company and/or Insurer reserves the right to require periodic physical examinations throughout the duration of the employee's absence due to disability. Such examinations shall be conducted by a physician or physicians designated by the Company and/or Insurer. The cost of such examinations, transportation and appropriate out-of-pocket expenses related thereto will be paid by the Insurer.

A third physician can be appointed by the employee's doctor and the Company and/or Insurer's physician if these two doctor's cannot agree on the employee's condition.

(m) Administration: It shall be the obligation of the employee to notify the employer immediately of their absence due to disability, following which the employer will provide the necessary initial claim forms.

The completed claim forms will be checked by the employer to confirm that the employee is a participant in the Plan and the employer will forward the claim forms to the Insurer for processing.

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(n) WEEKLY INDEMNITY, HEALTH AND WELFARE DISPUTE RESOLUTION MECHANISM

The following weekly indemnity dispute mechanism will apply conditional to:

The employee has submitted the required claim forms properly filled;

and

The employee has given authorization to the Company and/or the insurer to have access to the information they require to adjudicate the claim.

i) If requested by the employee, the Company will make advance payments at normal pay intervals until the claim is processed. The employee will sign a promissory note stating that they will reimburse the Company for any advance payments received.

ii) The Company and/or insurer reserves the right to demand physical examinations throughout the duration of the employee’s absence due to disability.

Such examinations shall be conducted by physicians designated by the Company and/or insurer.

Cost of physical examinations, transportation and reasonable out of pocket expenses related thereto will be reimbursed.

iii) Regardless of (ii) above, if there is a medical dispute

as to the validity of a claim and/or the continuance of a claim and if the physicians of the employee and the

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Company or insurance carrier fail to reach an agreement, the dispute will be referred to a mutually agreed upon practicing specialist, picked from a list established yearly, who will render a final and binding decision. Payments will continue until that final and binding decision is rendered.

2403 HOSPITALIZATION AND MEDICAL CARE INSURANCE 2403.1 (A) The Company will pay the premium costs of O.H.I.P.

during the term of this Agreement.

O.H.I.P. coverage will be provided to all employees who are off work due to Worker's Compensation Claim or Short Term Disability Claim for a period of twelve (12) months from date of accident or illness provided the disability continues.

(B) If there is a change in the method of payment for

O.H.I.P. due to legislative action, the agreed-to amounts will be used in the described manner:

1. The Company will pay the entire cost up to the agreed-to amounts. 2. Any unused portion will be applied to such other

employee benefits as may be agreed upon between the parties.

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2403.2 New employees who are not already enrolled in the Ontario Health Insurance Plan are required to join when hired. Benefits are effective from the first day of the third month following the date of hiring. If they are already covered, a new employee is transferred to the Company Group by presenting their Certificate of Payment (Form 104). The employee pays the full cost of premiums for the first three (3) months of employment by payroll deduction. 2404 GROUP LIFE INSURANCE Eligibility: New employees become eligible for enrolment in the Group Life Insurance Plan on the first day of the month following the completion of one (1) year of continuous service. Spare Board employee(s) will become eligible for Group Life Insurance after completing one (1) year of employment, provided that during the one (1) year they have worked at least one hundred and eighty (180) days and have not been laid off for more than thirty (30) consecutive days. The life insurance coverage for an individual employee will be seventy-five thousand dollars ($75,000.00) fully paid by the Company. Effective September 1, 2017 life insurance coverage for an individual employee will increase to eighty thousand dollars ($80,000.00). Each participating employee who is actively at work, may elect to be insured for an additional amount of twenty-five

78

thousand dollars ($25,000), one unit, of term life insurance. Employees actively at work and who meet evidence of insurability requirements of the insurance provider may also purchase up to an additional nine (9) units of term life insurance. The maximum number of units available is ten (10) or $250,000. An employee who elects this additional coverage will be required to pay the full cost of the additional term life insurance through payroll deductions. For employees who retire, the Company will provide insurance of five thousand dollars ($5,000.00) at no cost to the employee. The Company will provide for the following dependent life insurance on the following basis: 1. Spouse - fifteen thousand dollars ($15,000.00). 2. Each unmarried child:

a) who is fourteen (14) days, but less than nineteen (19) years; (and twenty-five (25) years when a student full time), and is wholly dependent on the employee for support seven thousand five hundred dollars ($7,500.00)

The spouse's life insurance will be reduced to five thousand dollars ($5,000.00) upon the employee's retirement and cancelled upon their death. The plan is described in Appendix "K".

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2405 ACCIDENTAL DEATH AND DISMEMBERMENT Twenty-four (24) hour Accidental Death and Dismemberment coverage will be provided by the Company, with a face value of fifty thousand dollars ($50,000.00). Effective May 1, 2015 Accidental Death and Dismember coverage will increase to seventy-five thousand dollars ($75,000.00). Effective September 1, 2017 Accidental Death and Dismemberment coverage will increase to eighty thousand dollars ($80,000.00) Eligibility: New employees will be eligible for Accidental Death and Dismemberment Coverage on the first day of the month following completion of six (6) months of continuous service. Spare Board employee(s) will be eligible for Accidental Death and Dismemberment Coverage after they have completed six (6) months of employment, provided that during the six (6) months they have worked at least ninety (90) days and have not been laid off for more than thirty (30) consecutive days. 2406 LONG TERM DISABILITY INSURANCE The Company will pay the entire cost of the premium.

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The Long Term Disability Benefit Plan shall be administered in accordance with the terms of the insurance policy and shall contain the following governing provisions: (A) Eligibility:

Employees will become eligible for the benefits of the Long Term Disability Benefit Plan on the first day of the month following the completion of six (6) months of continuous service.

A Spare Board employee will become eligible for Long Term Disability after they have completed six (6) months of employment provided that during the six (6) months they have worked at least ninety (90) days and have not been laid off for more than thirty (30) consecutive days.

(B) Effective Date of Coverage: The coverage of a present eligible employee commences on the first day the Long Term Disability Benefit Plan becomes effective, provided that the employee is actively at work on that day. The coverage of a future eligible employee will commence on the first day of the month following completion of the eligibility requirements, provided they are actively at work on the day the coverage is due to commence.

Any employee absent from work due to sickness or injury on the day coverage was due to commence will be insured on return to active full-time employment.

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However, if they are disabled from the same or related cause within a thirty (30) calendar day period, such disability will not be covered.

Any eligible employee absent from work due to lay-off on the day their insurance is due to commence shall be enrolled in the Long Term Disability Benefit Plan upon recall and reporting to work. Any eligible employee absent from work due to authorized leave of absence on the day their insurance is due to commence shall be enrolled in the Long Term Disability Benefit Plan upon their return to regular employment.

(C) Qualifying Period: An insured employee who is permanently and totally disabled shall be eligible for benefits under the Long Term Disability Benefit Plan when the benefits payable to the employee for such permanent and total disability under the Weekly Indemnity Benefit Plan are ex-hausted.

(D) Definition of Disability:

An insured employee is considered totally disabled if, after having completed benefits under the Weekly Indemnity Plan, they are unable because of disease or injury to perform the duties of their regular occupation, for the ensuing twenty-four (24) months, and thereafter they are unable to perform any and every duty of every occupation in the mill for which they are reasonably fitted by education, training or experience.

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(E) Amount of Benefit:

Disability benefits will be paid monthly in arrears. The monthly benefit is equal to:

55% x Employee’s Wage x 2080 (applies to day workers) 12 55% x Employee’s Wage x 2184 (applies to shift workers) 12

The benefit amount shall be reduced by any payments on behalf of the employee only, made under any government disability plan (except increases in such payments made twelve (12) months or more after the date disability is deemed to have commenced), WSIB and any other non-private disability income plans.

The Company agrees to upgrade Long Term Disability benefit payments, Pension accrual and Group Life Insurance coverage for all employees who have been continuously disabled for five (5) years or more to reflect the, September 1, 2014, September 1, 2015, September 1, 2016 and September 1, 2017 wage increases.

Changes to Long Term Disability Benefits and Group Life Insurance coverage to reflect the September 1, 2014 wage increase will take effect from the later of:

i) September 1, 2014;

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ii) the completion of the five (5) year qualifying period provided this occurs before September 1, 2015.

Changes to Long Term Disability Benefits and Group Life Insurance coverage to reflect the September 1, 2015 wage increase will take effect from the later of:

i) September 1, 2015; ii) The completion of the five (5) year qualifying

period provided this occurs before September 1, 2016.

Changes to Long Term Disability Benefits and Group Life Insurance coverage to reflect the September 1, 2016 wage increase will take effect from the later of:

i) September 1, 2016;

ii) The completion of the five (5) year qualifying period provided this occurs before September 1, 2017.

Changes to Long Term Disability Benefits and Group Life Insurance coverage to reflect the September 1, 2017 wage increase will take effect from the later of:

i) September 1, 2017;

ii) The completion of the five (5) year qualifying period provided this occurs before September 1, 2018.

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(F) Benefit Period: Benefits will be paid during an employee's period of permanent and total disability up to age sixty-five (65), recovery or death.

(G) Cessation of Benefits: Benefits shall cease upon the earlier of any one of the following: i) When benefit payments have continued for a

period as described under section entitled "Benefit Period";

ii) When the employee ceases to be disabled as defined under the section entitled "Definition of Disability";

iii) When the employee retires under one of the early retirement options in the Dryden Pension Plan;

iv) When the employee dies; v) When the employee attains age 65.

(H) Recurrence of Disability from a Same or Related Cause:

If an employee has returned to active, full-time work with the Company, is disabled from the same disability as previously, or from a related cause within three (3) months of such return the recurrence will be regarded as a continuation of the previous disability. The employee will resume collection of the Long Term Disability Plan benefits and the recurrence will be treated as part of the original disability for the purpose of determining the duration of the employee's disability benefits.

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If an employee is disabled from the same or a related cause after three (3) months of active, full-time work, the second period of disability will be regarded as a new period of disability from a different cause.

(I) Recurrence of Disability from a Different Cause:

In the case of the employee who has returned to work after qualifying for and receiving Long Term Disability Benefits and suffers a new and different disability, their entitlement to Long Term Disability benefits will be as detailed in (F) above.

(J) Rehabilitation: If, during a period of total and permanent disability, the employee attempts some occupation for which they are reasonably fitted by education, training or experi-ence, and such return to work is part of a program of rehabilitation approved by the Company and the Insurance Company, the rehabilitation provision of the Long Term Disability Benefit Plan contract shall come into effect. (If the employee attempts rehabilitation with a different employer, the Insurance Company's approval only will be required).

If an employee, during a period of total and permanent disability, returns to their own occupation it will not be considered as rehabilitative employment and, if the employee is subsequently absent from work due to disability, the provisions under the sections entitled "Recurrence of Disability from a Same or Related

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Cause" or "Recurrence of Disability from a Different Cause" will apply.

(K) Accumulation of Vacation, Pension Credits and Welfare Contributions:

An employee shall not accumulate credit for vacation and Company contributions for Welfare plans will not be made on their behalf while such employee is in receipt of benefits under the Long Term Disability Benefit Plan.

While receiving benefits under the Long Term Disability Plan, an employee will continue to accrue full pension credits at no cost to the employee based on their regular classified rate as of the date disability commenced upgraded to reflect all wage increases effective during the term of this Agreement. Although accruing pension benefits, no death or termination benefits will accrue during this period except with respect to interest on employee contributions made prior to receiving Long Term Disability benefits.

(L) Group Life Insurance: i) Premium Waiver:

The amount of Life Insurance in force for an employee at the commencement of their Long Term Disability benefits will remain in force without further payment of premium as long as such disability benefits are being paid to them.

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ii) Payment for Disability Benefits: The Disability Benefit under the Life Insurance will be payable to the employee at such time as their benefits under the Long Term Disability Plan are exhausted. However, they must be still totally and permanently dis-abled from the same or related cause for which their Long Term Disability Plan benefits were payable, and totally and permanently disabled within the definitions given in the Life Insurance contract.

Once payment of the Disability Benefit under the Life Insurance contract is made, no further life insurance benefits are payable.

2407 DENTAL INSURANCE - Blue Cross-type Plan 7 with Riders 1, 2, and 3. - Fifty per cent (50%) co-insurance on Riders 2 and 3. The Company agrees to pay one hundred per cent (100%) of the premium costs for the term of this Agreement. Effective January 1, 2015, 50% of the cost of Class II and Class III covered expenses based on the 2014 Ontario, Dental Association Schedule of Fees. Effective January 1, 2016 50% of the cost of the Class II and Class III covered expenses based on the 2015 Ontario Dental Association Schedule of Fees.

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On January 1st of following years 50% of the cost of the Class II and Class III covered expenses will be updated to follow the Ontario Dental Association Schedule of Fees from the preceding year, consistent with the method used above. The Plan is described in Appendix "I". 2408 EXTENDED HEALTH CARE INSURANCE Blue Cross-type Plan: - Semi-private - Prescription drugs - $10.00/$20.00 deductible The Company will pay the premium cost for the term of this Agreement. The plan is described in Appendix "J". 2409 VISION CARE The Company will pay the cost of Vision Care during the term of this agreement. The following Vision Care expenses shall be considered eligible expenses: Effective January 1, 2015: frames, lenses and the fitting of prescription glasses, including contact lenses, or laser eye surgery up to a total payment of two-hundred dollars ($200.00) per family member, once in any two (2) consecutive calendar years.

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Effective January 1, 2015 up to forty dollars ($40.00) maximum per insured for eye examinations in each 24 month period.

Dependent children less than nineteen (19) years of age may receive benefits once every twelve (12) months. The following items and charges are not covered under this Vision Care Plan: - Industrial safety glasses - Tints, other than #1 or #2 tint - Charges for expenses covered by the Workplace

Safety and Insurance Board, or any government agency or any third party.

The Plan will provide coverage for dependents up to age twenty-five (25) if a full time student. Any mentally or physically disabled child who was covered up to the maximum age shall remain covered beyond such age, provided the child upon reaching the maximum age and thereafter, is incapable of self-sustaining employment and relies upon the employee for support and maintenance. 2410 JOINT BENEFIT COMMITTEE A Joint Committee on welfare plans will be established. This Committee will consist of three (3) Union representatives (one from each of the three (3) Mill Unions) and not more than three (3) Company representatives. The Joint Committee shall not have the authority to make

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changes in the Welfare plans involving additional costs to either the employees or the Company. The Company will conduct an annual benefits review with Union leadership and the Company’s Canadian Benefits specialists. The Company recognizes the significance of the Union concern regarding benefits and the need for employees to receive all the benefits that have been negotiated on their behalf. The Company will ensure that employees receive the benefits that have been negotiated on their behalf. The Company will implement a Weekly Indemnity Dispute Resolution Mechanism. 2411 RETIREE SURVIVING SPOUSE HEALTH CARE COVERAGE

In the event of the death of a retiree covered under the health care benefit plan, the surviving spouse will have the option to continue to be covered by the plan provided the spouse pays the total cost of the premiums.

If there is no pension payment from which to deduct the premiums, the spouse will have to supply to the Company postdated cheques covering the coming year’s premium payments. To maintain the coverage, the spouse will have to submit required information and payment as stipulated by the Company’s procedures.

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The coverage will cease effective the date this benefit plan coverage would have expired for the retiree, or earlier if there is a change to the surviving spouse’s marital status.

2412 CHILDREN WITH DISABILITIES

Insured children suffering from a mental or physical disability will continue to be covered beyond the maximum age as long as they are dependents of the employee.

2500 - AUTOMATION AND TECHNOLOGICAL CHANGE

The Company is concerned about the impact on employees and conditions of employment resulting from technological change, automation, and change or elimination of a process. Having concern for the impact of such changes which may result in job elimination, the Company: (A) Undertakes to advise the Union as far in advance as is

feasible (not less than sixty (60) days) of such changes which the Company has decided to introduce, which will result in significant change in the employment status of employees.

(B) Further agrees to discuss with the Union the effect of

such changes on the employment status of employees

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and to consider practical ways and means of minimizing the adverse effect on employees displaced by such change. Such measures as early retirement, retraining and transfers to other existing jobs will be implemented.

(C) All persons who are employed on a year-round basis

with one (1) year's continuous employment who are set back to a lower paid job due to job elimination under conditions set forth above, their rate shall be maintained for a period of six (6) months from date of set back. For an additional period of six (6) months, an adjusted rate will be established mid-way between their previous rate at time of set-back and the rate of their new job for each work week, which depends upon the operating schedule. At the end of one (1) year the rate of the job, to which they are assigned, will apply. Interpretation of this section shall be based on the following:

(D) A permanent employee is one with ninety (90) days of

continuous service from the date of their established seniority.

2600 - SEVERANCE PAY

A permanent employee with at least one (1) year's continuous service who is laid off by management decision for such causes as technological change, automation, more efficient operation, change or elimination of a process, lack of orders, shall be paid severance pay. Severance pay shall not be paid due to job elimination for such causes as

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fire, flood, explosion or "Act of God". In recognition of the impact that such changes may have upon employees, and the concern of the Parties regarding employees who may be affected, the following shall apply: i) Severance Pay shall be calculated on the basis of one

(1) week of regular earnings for each year of continuous service including completed months. One-half (½) of this severance pay is payable after the employee has been laid off due to job elimination for a period of six (6) weeks. The second half of the severance pay is payable after the employee has been laid off a total of three (3) months. It shall be the responsibility of the employee to make application for such severance pay.

ii) If recalled to work before the severance pay payment

is payable, no such payment will be made. Any employee refusing a recall shall forfeit their right to severance pay.

iii) If an employee is recalled after having received all of

the severance pay due them will, as of the date of return, commence a new period of accumulation which will be credited toward any future lay-off.

iv) If an employee is recalled after having received half of

the severance pay due them they will, upon return to work, retain the right to the unpaid portion which will be added to any new accumulation of severance pay.

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v) Severance pay will not be paid if reduction of personnel is due to seasonal or temporary work. Permanent lay-off

In the event of a permanent department or mill closure, the maximum amount of severance pay will be one and one-half (1.5) weeks of pay per year of continuous service.

Lay-off – 12 consecutive months

If the duration of a lay-off exceeds twelve (12) consecutive months, one-half (0.5) week of pay will be paid per year of continuous service in addition to the current provisions.

The total amount of severance pay that an employee may receive will not exceed one and one-half (1.5) weeks of pay per year of continuous service, for any reason, for any time.

The number of continuous years of service shall be calculated from the last lay off period for which the employee received severance pay.

This is effective the first day of the month following ratification of the collective agreement.

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2700 - NON-DISCRIMINATION There shall be no discrimination against any bargaining unit employee on account of race, colour, creed, gender, sexual preference, age or national origin. Any provision of this Agreement or practice or custom to the contrary shall be null and void. There shall be no discrimination, harassment or intimidation against anyone. Nothing in the Collective Agreement shall conflict with any Provincial or Federal legislation.

2800 - JOB EVALUATION The Company agrees to join the Pulp and Paper Manufacturer's Job Classification Plan in order to do an evaluation on a uniform basis with other companies in the industry. The Job Classification Plan will be implemented and any upward adjustments will be effective March 1, 1983. Details of the Job Classification Plan including the Job Classification Scale are attached hereto and form part of this Agreement (Appendix "G"). 2900 - SAFETY FOOTWEAR The Company will pay one hundred and ten dollars ($110.00) annually to employees who have completed six

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(6) months of continuous service towards the purchase of protective footwear. Effective September 1, 2016 the Company will pay one hundred and fifty dollars ($150.00) annually to employees who have completed six (6) months of continuous service towards the purchase of protective footwear. Such payment will be made in December of each year.

3000 - FLEXIBILITY This program is described under Appendix "L".

3100 - DURATION AND REOPENING The Company and the Union agree that this Agreement shall remain in full force and effect from September 1, 2014 to August 31, 2018, inclusive, and from year to year thereafter, unless written notice of intention to terminate or amend this Agreement is given by either party within ninety (90) days before the 31st day of August in any year thereafter in which this Agreement continues to remain in effect. Either party to this Agreement shall have the right to open negotiations for changes therein by serving of a written notice upon the other party within ninety (90) days prior to the expiration date, August 31, 2018.

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Appendix A

Schedule of Rates – Mill Work Systems

CLASSIFICATION CLASS SEPT

01/14

SEPT

01/15

SEPT

01/16

SEPT

01/17

FIBRELINE;

Field Assistant 3 8 29.767 30.362 30.969 31.589

Field Assistant 2 4 28.491 29.060 29.642 30.234

Field Assistant 1 4 28.491 29.060 29.642 30.234

RECAUSTICIZER;

Recaust/Kiln Operator 15 32.249 32.894 33.552 34.223

Recaust/Kiln Assistant 9 30.045 30.646 31.259 31.884

DIGESTER;

Digester Operator 21 34.795 35.491 36.201 36.925

Digester Assistant 11 30.816 31.432 32.061 32.702

BLEACH\CHEMICAL PLANT;

Bleach Plant Operator 21 34.795 35.491 36.201 36.925

Chemical Plant Operator 13 31.518 32.148 32.791 33.447

Bleach Plant Assistant 12 31.148 31.771 32.406 33.054

Chemical Handler 11 30.816 31.432 32.061 32.702

Note: an additional 20 cents will be paid to all Head Operators; and 15 cents to

Assistants who have refrigeration papers.

PULPMACHINE;

Machine Tender 19 33.943 34.621 35.314 36.020

Back Tender 14 31.890 32.528 33.179 33.842

1st Assistant 8 29.767 30.362 30.969 31.589

2nd

Assistant 6 29.111 29.693 30.287 30.893

3rd

Assistant 6 29.111 29.693 30.287 30.893

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CLASSIFICATION CLASS SEPT

01/14

SEPT

01/15

SEPT

01/16

SEPT

01/17

CHIP HANDLING:

D7/D10 * refer to Work

Systems

31.686 32.320 32.966 33.626

Chip and Hog Loader 8 29.767 30.362 30.969 31.589

Chip Handler 6 29.111 29.693 30.287 30.893

COMBINED SERVICES:

Lead Hand 12 31.148 31.771 32.406 33.054

Payloader Operator 7 29.447 30.036 30.637 31.250

Fork Loader

Operator

7 29.447 30.036 30.637 31.250

Boom Truck

Operator

8 29.767 30.362 30.969 31.589

Tandem Axle Truck

Driver

6 29.111 29.693 30.287 30.893

Truck Driver-3T

Van/Dump

5 28.804 29.380 29.967 30.567

Truck Driver – ½

Ton

5 28.804 29.380 29.967 30.567

Skid Steer Operator 4 28.491 29.060 29.642 30.234

Fork Truck Operator 4 28.491 29.060 29.642 30.234

CLARIFIER:

Clarifier/Truck

Driver Op

11 30.816 31.432 32.061 32.702

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CLASSIFICATION CLASS SEPT

01/14

SEPT

01/15

SEPT

01/16

SEPT

01/17

GENERAL:

Site Janitorial Crew 2 27.893 28.451 29.020 29.600

Fire Chief 35.830 39.156 39.939 40.738

Assistant Fire Chief 35.226 36.690 37.424 38.172

+50cents/hr premium for Fire Chief & Assist Fire Chief re Trades Flexibility applied

to Sept 1/12 column

Reserve– 2 Skill Blocks or 1 yr

service

27.597 28.149 28.712 29.286

Reserve – Entry Level 26.284 26.810 27.346 27.893

STORES:

Issue Clerk 7 29.447 30.036 30.637 31.250

Issue Clerk – Start (6 mos.) 27.696 28.250 28.815 29.391

TRADES:

(as per Letter of Understanding – Establishment of Two Trades)

ELECTRICAL &

INSTRUMENTATION:

Working Foreman-1st level EI

Tech Skill Set

37.737 39.252 40.037 40.837

Working Foreman 36.478 37.968 38.727 39.502

E & I Tech – 1st level skill set 36.449 37.938 38.696 39.470

E & I Technician – on shift +0.10 +0.10 +0.10 +0.10

Journeyman ‘A’ 35.191 36.655 37.388 38.136

Journeyman ‘A’ – on shift +0.10 +0.10 +0.10 +0.10

Journeyman ‘B’ 30.922 32.301 32.947 33.606

Journeyman ‘C’ 30.551 31.922 32.561 33.212

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CLASSIFICATION CLASS SEPT

01/14

SEPT

01/15

SEPT

01/16

SEPT

01/17

Helper ‘A’

29.565

30.916

31.534

32.165

Helper ‘B’ 29.333 30.680 31.293 31.919

Helper ‘C’ 28.869 30.206 30.811 31.427

Electrician while pole climbing 35.191 36.655 37.388 38.136

E & I Technician II 31.469 32.858 33.516 34.186

E & I Tech II Helper – after 12

mos.

29.880 31.237 31.862 32.499

E & I Tech II Helper – after 6

mos.

29.415 30.763 31.378 32.006

E & I Tech II Helper – start 29.217 30.561 31.172 31.796

Core skill trades are Electrician, Instrumentation, Electronics.

MECHANICAL TRADES:

Working Foreman-1 additional

core skill

37.643 39.156 39.939 40.738

Working Foreman 36.385 37.873 38.631 39.403

Mech Tech – 1 additional core

skill

36.309 37.795 38.551 39.322

Journeyman ‘A’ 35.052 36.513 37.244 37.988

Journeyman ‘B’ 30.922 32.301 32.947 33.606

Journeyman ‘C’ 30.551 31.922 32.561 33.212

Helper ‘A’ 29.565 30.916 31.534 32.165

Helper ‘B’ 29.333 30.680 31.293 31.919

Helper ‘C’ 28.869 30.206 30.811 31.427

The above rates include: Millwright, Pipefitter, Welder, Painter, Garage Mechanic,

Machinist, R/V Crew, Tinsmith, Bricklayer and Sawfiler.

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Core skill trades are Millwright, Pipefitter, Welder, Machinist

CLASSIFICATION CLASS SEPT SEPT SEPT SEPT

01/14 01/15 01/16 01/17

Mech Tech II – Working

Foreman

35.124 36.586 37.318 38.064

Mechanical Technician II –

Lead

32.788 34.204 34.888 35.585

Mechanical Technician II –

Shift

32.073 33.474 34.144 34.827

Mechanical Technician II 31.685 33.079 33.741 34.415

Mech Tech II (start – for 6 mos) 30.772 32.148 32.791 33.447

APPRENTICES – ALL

TRADES:

Apprentice – 4th Period (12 mos.)

Apprentice - 3rd

Period (18 mos.)

30.922

28.743

32.300

30.078

32.946

30.679

33.605

31.293

Apprentice – 2nd

Period (12 mos.) 28.393 29.721 30.315 30.922

Apprentice – 1st Period (6 mos.) 28.042 29.363 29.950 30.549

Tool Crib Attendant I

35.052

36.513

37.243

37.988

Tool Crib Attendant II 30.331 31.698 32.332 32.978

TECHNICAL SERVICES:

Tech – 3 Skill Blocks 33.090 33.752 34.427 35.115

Tech – 2 Skill Blocks 13 31.518 32.148 32.791 33.447

Tech – 1 Skill Block 12 31.148 31.771 32.406 33.054

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APPENDIX "B”

RULES OF CONDUCT

SECTION 1 - READY AT BEGINNING OF SHIFT All employees are required to be on their jobs ready for work: At the commencement of their regular schedule, as established by the respective departments. Shift relief change times are to be re-confirmed every year in each department and that these hours would then constitute the normal hours of work for each department. SECTION 2 - TOUR WORKERS TO WORK UNTIL RELIEVED Tour workers are required to stay on their job until relieved by their mates or until a substitute is found and will work an extra shift if necessary. No tour worker shall leave their place to wash up and dress until their relief has changed their clothes and reported to take on the responsibility of the position.

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SECTION 3 - EMPLOYEES WHO EXPECT TO BE ABSENT Arranging for leave or giving notice of unavoidable absence: (a) It is the duty of a tour worker to report for their regular

shift unless they have already arranged with the Foreman/Supervisor for a leave of absence. If unavoidably prevented from reporting, the employee must give notice to their Foreman/Supervisor, or at the office as provided hereunder and the person receiving this notice must complete the standard report provided for recording such routine.

b) In the case of anticipated absence, employees must

notify their Foreman/ Supervisor: Four (4) hours before commencement of their next regular shift. SECTION 4 - REPORTING IN AFTER ABSENCE (a) Four (4) days or more:

An employee who has been absent for four (4) days or more shall notify their Foreman/Supervisor twelve (12) hours in advance of the time they are returning to work.

(b) An employee who has been absent for less than four (4) days shall notify their Foreman or Supervisor as provided hereunder:

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(i) If on 3-11 shift, by 10:00 a.m. (ii) If on 11-7 shift, by 2:00 p.m. (iii) If on 7-3 shift, on arrival at work. SECTION 5 - ABSENCE WITHOUT LEAVE Employees who fail to report for work or who in any way penalize their mates or penalize the Company by causing payment of overtime under 1201 will be subject to these rules: (a) Unarranged Absence:

If an employee has been absent from work without arrangement or without notice required by Section 3 above, they shall report to their superintendent for instructions before going to work.

(b) Penalties for Absenteeism:

Should investigation of case of absenteeism fail to disclose a bona fide reason, Management shall discipline the absentee as provided below:

i) First Case - Instruction and Warning; Second Case - Instruction and up to three (3) days layoff Third Case - Instruction and lay-off subject to dis charge.

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ii) It is understood that should an employee have a clear record for a full twelve (12) month period between Steps 1 and 2 or Steps 2 and 3, or after Step 3, their record shall be considered clear.

iii) Should the unarranged absence of an employee

be of sufficient length or the reason for the absence be of such a nature to indicate irresponsibility in the individual concerned, Management may discipline the offending employee with a layoff subject to discharge.

(c) Record of Unexcused Absence:

All cases of unarranged absenteeism will be recorded on the employee's record by the Human Resources Office, who will be given a written report of each case by the superintendent concerned. A copy of this report will be sent to the individual and the secretary of the Union concerned.

(d) Appeal Procedure:

Disciplinary action under these rules and regulations shall be subject to Grievance Procedure.

SECTION 6 The Company is agreeable to wipe an employee's record clean after a 12-month period in which no disciplinary action slips have been issued.

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SECTION 7 No employee shall be disciplined or discharged without just cause. 1. Acts of conduct or wilful negligence that are contrary to

the spirit of this Agreement are: (a) Bringing or consuming intoxicants or illicit drugs

into the Mill or on any property under control of the Company;

(b) Reporting for work under the influence of alcohol or drugs;

(c) Sleeping on duty;

(d) Disobedience;

(e) Smoking in prohibited areas;

(f) Neglect of duty;

(g) Disorderly conduct;

(h) Dishonesty;

(i) Falsifying Company reports;

(j) Insubordination;

(k) Removing any tools or property without written approval;

(l) Deliberate destruction of the property of the Company or of another employee;

(m) Removal or unauthorized use of fire equipment, except in the case of fire;

(n) Possession of firearms on Company property without special permission.

2. All of the above shall be considered good cause for discharge for misconduct.

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SECTION 8 - REPORTING INJURIES All injuries must be reported immediately to the Health and Safety Department or to their Foreman/ Supervisor. SECTION 9 - LEAVE OF ABSENCE The Company will grant a: 1. (a) Leave of Absence, without pay, up to a maximum

of three (3) months may be granted at the discretion of Management for the following reasons:

(1) Legitimate personal reasons;

(2) Official Union Business;

(3) Candidacy for public office at the Federal or Provincial level. Such leave may be extended until seven (7) days have elapsed following the date of the election.

(b) Any leave of absence granted pursuant to Clause 1(a) will not result in any loss of seniority. 2. (a) Leave of absence without pay may be granted at

the discretion of Management, for service as an elected representative in the Federal or Provincial legislature. Such leave, if granted, shall normally expire thirty (30) days following conclusion of the

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period of elected office, but in no case shall it be in excess of five (5) years.

(b) Any leave of absence granted pursuant to Clause

2(a) will not cause a break in continuity of service, but the period of absence shall not be counted in calculating any service-related benefit.

3. Employees when granted a leave of absence in excess

of one (1) month, will be required to prepay the full premiums for group life insurance and all other insurance coverages in accordance with the provisions of the respective policies.

4. All leaves of absence must be applied for in writing. 5. The Company may require an employee to exhaust

their normal vacation entitlement before commencing a leave of absence.

6. MATERNITY / PARENTAL LEAVE

In the case of maternity leave and parental leave, the eligible employee will be granted a leave of absence in accordance with the Federal and/or Provincial laws.

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APPENDIX "C"

UNIFOR

LOCAL 105.1

CHECK OFF AUTHORIZATION I authorize and request Domtar, Dryden Operations, to deduct Union dues each month from my wages. The Company is authorized to deduct that amount as advised in writing by the Financial Secretary of Local 105.1, Unifor, and remit same to the Financial Secretary of Local 105.1. I reserve the right to revoke this authorization during the two (2) week period preceding the next anniversary date of the Agreement between Domtar, Dryden Operations and Local 105.1 of Unifor. This authorization shall be automatically renewed for subsequent Agreements between Domtar, Dryden Operations and Local 105.1 of Unifor, subject to the privilege of revocation during the two (2) week period immediately preceding the expiration of each subsequent Agreement. EMPLOYER_______________________________

ID NUMBER ___________________________________

SIGNED _____________________________________

DATE ________________________________________

SEAL OF LOCAL 105.1

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APPENDIX “D” With the implementation of Work Systems re-organization and lines of progression, and keeping within the intent of the original agreement, the parties hereby agree to the following revised list of bumpable positions available to those individuals who are laid off for any reason. LOCAL 105.1 LIST OF JOBS, RE: BUMPING: FIBRE LINE; Reserves (Vacatable) STORES; Issue Clerk Start COMBINED SERVICES; Basic Service Level I GENERAL; All Reserves SUPPORT SERVICES; Janitor (Referral)

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APPENDIX "E" List of Classifications and Number of Employees as Referred to in Clause 1202.2(D). KRAFTMILL 1 Digester Operator 2 hours previous to start-up 1 Digester Assistant 2 hours previous to start-up 1 Bleach Plant Operator 1 hour previous to start-up 1 Bleach Plant 1

st Assistant 1 hour previous to start-up

1 Pulp Machine Tender 1/2 hour previous to start-up 1 Causticizer/Kiln Operator 8 hours previous to start-up 1 Causticizer/Kiln Assistant 8 hours previous to start-up MECHANICAL 1 Mech Tech II 8 hours previous to start-up 1 Mech Tech II 2 hours previous to start-up 2 Mech Technicians with Core Millwright Skill 8 hours previous to start-up 3 Mech Technicians with Core Millwright Skill 2 hours previous to start-up 2 Shift E/I Technicians with Core Electrician skill 8 hours previous to start-up 1 E/I Technician with Core Electrician skill 2 hours previous to start-up 1 Mech Tech with Core Refrigeration & Vent skills 1 hour previous to start-up AND REMAIN 1 hour after shutdown 3 Mech Techs with Core Pipefitter Skills 1 hour previous to start-up

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(one to be with Hydraulic skills) 2 E/I Techs with Core Instrument Skills 1 hour previous to start-up 1 Shift E/I Tech with Instrument Core skills 8 hours previous to start-up 1 Stores Issue Clerk 1 hour previous to start-up

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APPENDIX "F" SPARE BOARD AGREEMENT

LETTER OF UNDERSTANDING

BETWEEN

DOMTAR INC,

(Dryden Mill Operations)

AND

UNIFOR LOCAL 105.1

This agreement satisfies the requirements of the January 20

th, 2009 Labour Adjustment Agreement in regard to the

development of a reserve pool of 5 employees, hereinafter referred to as the “Spare Board”. This agreement in no way alters the collective agreement or its side agreements unless altered specifically in this agreement. Purpose: The purpose of the Spare Board is to provide trained backfill to the 105.1 operating departments for situations when the number of vacancies exceeds the ability to run the departments within the work system designs. The Spare Board will be recognized as the entry position to the mill for Unifor Operations jurisdictions.

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This agreement will become appendix “F” of the collective agreement. Rate of Pay: Card rate Employees filling the Spare Board who have been affected by previous mill restructuring agreements back to 2003 will also be assigned the card rate of a reserve with 2 skill blocks or one year service. New hires filling the Spare Board will initially be assigned the card rate of an entry level reserve. Benefits for Spare Board Employees: Spare Board employees will be eligible for benefits as outlined in the Collective Agreement. Filling of the 5 Spare Board Positions: Vacancies will be filled through the hiring process in conjunction with clause 300 of the collective agreement. Effect of Layoff for Spare Board Employees: In the event of a temporary layoff or layoff of permanent positions in the mill, employees who have been hired to fulfill requirements beyond that being fulfilled by the Spare Board will be laid off before Spare Board employees. Spare Board employees, in turn, will be laid off before permanent employees, with the exception of people returning from LTD (either WI or WSIB related). These

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employees will use their accumulated seniority to maintain employment in the mill. Bidding: When openings occur within lines of progression within the jurisdictions of Local 105.1 the Spare Board will be eligible to bid. The bidding process will occur as outlined below:

For a bid within Local 105.1: The bidding preference will be by 105.1 seniority; then by Company seniority within the Spare Board.

At no time will a Spare Board employee receive a bid over an employee within the work system.

If a permanent opening occurs through the normal bid process and the vacancy cannot be filled by the bid process the senior Spare Board employee will be placed into the position.

In order for a Spare Board employee to maintain a position within the mill they must bid on available postings to secure a permanent position in the mill. The Spare Board employee will have 12 months to place a bid on a permanent job. This clause is reliant on permanent bids being available in a 12 month period.

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Training: Training requirements will be established based on anticipated backfill requirements. Spare Board employees will be trained initially in 2 areas. On an as needed basis, the Company and Union will review the worked hours of the Spare Board employees in an attempt to distribute available hours by seniority where possible. Training requirements will be discussed when there is a significant discrepancy in the available hours being received by senior employees. Entry level training for each area will be established and all Spare Board employees will be put through this training. This will allow Spare Board employees to provide occasional assistance to operating areas without full training in the work system skill blocks. Hours of Work: There will be no guaranteed hours of work for employees on the Spare Board. They will be available and will report for work when required. Spare Board employees will be scheduled ahead of other employees providing relief within the area in which they are trained. Time will be paid as outlined in the twelve hour shift agreement. The exceptions are:

Spare Board employees may train on a 48 hour week that is not a normal shift and all 48 hours will be at

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straight time unless it is covered by the 168 hour clause in the collective agreement.

The 48 hour clause in the collective agreement, with regards to an “established shift schedule” for the Spare Board, will be waived except in the situation where a Spare Board employee is scheduled for a complete week on the Thursday prior to the week being worked.

The Spare Board employees who are scheduled 3 – 12 hour shifts outside of a normal shift schedule may be scheduled one additional 8 hour shift. They may refuse the additional 8 hour shift if it is not scheduled the prior Thursday. All other overtime associated with an area will first go to the permanent crew prior to scheduling a Spare Board employee for overtime. Scheduling: Scheduling will be done through the HR office on a weekly basis. When a Spare Board employee is scheduled on the preceding Thursday to cover for a complete week, they will fall under all normal rules as outlined in the collective agreement. When previously scheduled in a department, mutual shift changes will be allowed during the scheduled period. The

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mutual shift change must show the change within the same period of scheduling. In no circumstance can a shift just be given away. All mutual shift changes must be approved by the supervisor and will be forwarded to the HR department. Vacation: The Spare Board will be one vacation group and a maximum of 1 will be allowed off at any one time and one off on a floater. In the event the spare board number is increased on a temporary basis, consideration will be given to increase this number to maintain the agreed to percentages discussed. From the first Sunday in June to the Saturday following the Labour Day weekend, Spare Board employees may only book 2 weeks of time off through the HR department. All requests for time off must be submitted by April 30 and approval of time off will occur by May 15 and will be based on seniority. The Spare Board cannot be guaranteed that they will get their exact dates for time off during this period but will be provided at least 2 weeks during this period based on department needs and their vacation eligibility. All requests after April 30 will be first come, first served within the Spare Board. Requests for floaters will be handled by the HR department. If scheduled for an extended period, the department in which the Spare Board employee is

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scheduled may grant a floater request based on department needs. Any remaining vacation/floaters/stats not scheduled by the fourth Sunday in October, will be scheduled by the HR department. The Spare Board will not be guaranteed any vacation or floaters during the two weeks starting the Sunday preceding Christmas day. Availability of time off will be dependent on department needs.

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APPENDIX "G" JOB CLASSIFICATION PLAN

It is agreed that all jobs under the jurisdiction of Unifor of Canada, except jobs in the mechanical trades and related occupations, clerical jobs and supervisory jobs, will be classified using the Pulp Manufacturers Job Classification Plan, Explanatory Booklet dated June 1, 1974, as amended. IMPLEMENTATION 1. The Job Classification Plan is the basis for determining the job class applicable to any existing jobs, and newly created jobs or any jobs which have changed. 2. The Wage Rate Structure established for the various job classifications is set forth in the "Schedule of Wage Rates", which forms part of this Agreement. 3. (a) In the event that new jobs are created or significant

changes occur in existing jobs, the employee or employer may request through the Mill Committee, the preparation of a new job description for submission to the Joint Classification Committee for evaluation.

(b) The Joint Classification Committee will evaluate the

job and inform the Mill Committee of the applicable job class.

(c) In the event that agreement on the evaluation cannot

be reached by the Joint Classification Committee, the

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question shall be referred for final resolution to the Senior Committee.

(d) The incumbent of a job will receive the rate applicable to the job class, determined as outlined above. An upward rate adjustment, if applicable, will be effective from the date the new job was created or the date that a revised job description was requested pursuant to 3(a). A downward rate adjustment, if applicable, will be effective from the beginning of the next weekly pay period following notification to the Mill Committee by the Joint Classification Committee.

4. The Job Classification Plan will be implemented and

upward adjustment will be effective on March 1, 1983. 5. Upon initial implementation of the Job Classification Plan

where the evaluation resulted in a rate lower than that in effect prior to the dates applicable in 4. above, the rate will be maintained as a "Red Circle" rate and will be applicable only to the incumbent on that date and employees who were used as replacements during the twelve month period prior to the date of implementation of the Plan at each location. Employees hired, transferred, or posted to another department after the dates referred to in (4) above will receive the class rate of the occupation they are hired for, transferred to, or accept through job posting.

Red Circle will disappear through attrition and promotion.

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6. General increases will apply to all occupations. 7. Adjustments to the scale will not apply to employees

whose rate are red-circled except in the case where the difference between the "red-circled" rate and the "class" rate is less than the total adjustment. In such a case, the difference will be applied and the "Red Circle" will be discontinued.

8. The Mill Committee will meet as required. 9. The Joint Classification Committee will meet as required. 10. As a condition of continued participation in the plan by

Domtar and in consideration of the Company's agreement to adhere to the general principles of the Job Classification Plan, the Union agrees that it will not cause or be party to the modification of any essential element of a Job Classification Plan in any other pulp and paper company in the Eastern Canadian industry to which the Union is a party, unless such modification is agreed to by all participating companies.

11. On the principle that, in implementing the Job Evaluation

Plan, no employee will receive less favourable treatment on any job than they did at any time prior to February 28, 1983, the following will apply:

If movement occurs downwards through lines of progression because of curtailment, individuals affected will revert to the rates they formerly enjoyed on the lower jobs

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to which they are transferred or the evaluated rate for the job at that particular time, whichever is the higher. Conversely, in the case of reverting to a higher level of operation, when individuals move back up through their lines of progression they will be paid the rates they formerly enjoyed on the higher jobs to which they are transferred, or the evaluated rate for the job at that particular time, whichever is the higher.

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JOB CLASSIFICATION SCALE

Classification Sept 1/14

Sept 1/15

Sept 1/16

Sept 1/17

1 27.632 28.185 28.749 29.324 2 27.893 28.451 29.02 29.6 3 28.212 28.776 29.352 29.939 4 28.491 29.06 29.642 30.234 5 28.804 29.38 29.967 30.567 6 29.111 29.693 30.287 30.893 7 29.447 30.036 30.637 31.25 8 29.767 30.362 30.969 31.589 9 30.045 30.646 31.259 31.884

10 30.434 31.043 31.664 32.297 11 30.816 31.432 32.061 32.702 12 31.148 31.771 32.406 33.054 13 31.518 32.148 32.791 33.447 14 31.89 32.528 33.179 33.842 15 32.249 32.894 33.552 34.223 16 32.696 33.35 34.017 34.697 17 33.09 33.752 34.427 35.116 18 33.497 34.167 34.85 35.547 19 33.943 34.621 35.314 36.02 20 34.35 35.037 35.738 36.453 21 34.795 35.491 36.201 36.925 22 35.196 35.90 36.618 37.35 23 35.62 36.332 37.059 37.80 24 36.06 36.781 37.517 38.267 25 36.491 37.221 37.965 38.724 26 36.89 37.628 38.381 39.149 27 37.342 38.089 38.851 39.628 28 37.754 38.509 39.279 40.065 29 38.171 38.935 39.714 40.508 30 38.607 39.379 40.167 40.97 31 39.001 39.781 40.577 41.389

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APPENDIX "H"

OPERATION OF ESSENTIAL SERVICES

1. The definition of Essential Services, are those services as determined by the Company that are required to prevent damage to the buildings, equipment or property of the Company. 2. The normal crew required with boiler or boilers in operation to provide Essential Services are as follows: 1 Mech Tech with Refrigeration & Vent Core Skill 1 Clarifier Operator 1 Fire Chief and/or Assistant Fire Chief 1 Recausticizer/Kiln Operator 3. The normal crew required without boiler or boilers in operation to provide Essential Services are as follows: 1 Mech Tech with Refrigeration & Vent Core Skill 1 Fire Chief and/or Assistant Fire Chief 1 Recausticizer/Kiln Operator

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APPENDIX "I"

DENTAL PLAN The following is a summary of the Dental Care Plan coverage by the benefits carrier. You, your spouse and your unmarried dependent children under age 21, or age 25 if attending trade school or university on a full-time basis, are eligible for coverage on the day following completion of four(4) months of continuous employment provided that you are not absent from work due to disability, leave of absence or lay-off. If you are away from work because of disability, leave of absence, or lay-off on the date that coverage for you and your eligible dependents would otherwise become effective, benefits will not start until you return to work. Any mentally or physically disabled child who was covered up to the maximum age shall remain covered beyond such age, provided the child upon reaching the maximum age and thereafter, is incapable of self-sustaining employment and relies upon the employee for support and maintenance. DENTAL CARE PLAN The plan provides you, and eligible dependents with reimbursement of:

a) 100% of the cost of Class I covered expenses, and

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b) Effective January 1, 2015, 50% of the cost of Class II and Class III covered expenses based on the 2014 Ontario, Dental Association Schedule of Fees.

c) Effective January 1, 2016, 50% of the cost of the

Class II and Class III covered expenses based on the 2015 Ontario Dental Association Schedule of Fees.

d) On September 1st of following years 50% of the cost

of the Class II and Class III covered expenses will be updated to follow the Ontario Dental Association Schedule of Fees from the preceding year., consistent with the method used in b) above.

Effective January 1, 2015, the maximum benefit per calendar year is one thousand, seven hundred and fifty dollars ($1,750.00) per insured family member for Class I and II covered expenses. The lifetime maximum benefit is one-thousand, seven hundred and fifty dollars ($1,750.00) per insured family member for Class III covered expenses. COVERED EXPENSES Class I Procedures: - Oral examinations, including scaling and cleaning of teeth - Topical application of sodium or stannous fluoride - Oral hygiene instruction - Dental x-rays - Extractions - Oral surgery, including excision of impacted teeth - Amalgam, silicate and plastic composite fillings

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- Anaesthetics administered in connection with oral surgery or other covered dental services

- Injections of antibiotic drugs by the attending dentist - Treatment of periodontal and other diseases of the

gums and tissues of the mouth - Endodontic treatment, including root canal therapy - Pits and fissure treatment Class II Procedures: - Initial installation (including adjustments after three (3)

months following original insertion) of partial or full removable dentures to replace one or more natural teeth

- Replacement of an existing partial or full removable

denture or the addition of teeth to an existing partial or full removable denture to replace extracted natural teeth, but only if evidence satisfactory to the benefits carrier is presented that the existing denture cannot be made serviceable.

- Repair or relining of dentures Class III Procedures: - Orthodontic treatment, including correction of malocclusion Services and supplies, in the case of each dental expense, must have been rendered and dispensed by a legally qualified dentist except that:

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i) Cleaning or scaling of teeth may be performed by a licensed dental hygienist if such treatment is rendered under the supervision and direction of such dentist, and

ii) installation, adjustments, repairs and relining of

complete dentures may be made by a dental mechanic or denturist legally practicing within the scope of his licence, but any charges in excess of the amount specified for such services and supplies in the dental mechanics' or denturists' tariff of the Province where such services and supplies are received will be disregarded.

PRE-DETERMINATION OF BENEFITS: Before starting extensive dental work, your dentist will tell you what they intend to do and the charge. If the cost of a course of treatment planned by the dentist for a covered family member is expected to exceed two hundred dollars ($200.00), the proposed course of treatment must be filed with, and approved by, the benefits carrier prior to the commencement of treatment. The necessary forms are available from the Human Resources Department. After reviewing the proposed course of treatment, the benefits carrier will notify both you and your dentist of the estimated payment under the Plan. Because of the difficulties of determining the necessity for the types of services involved after treatment has been received, failure to file and obtain approval may result in benefits of a lesser amount than would otherwise have been payable.

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A patient may select a more expensive procedure, rather than a suitable alternate procedure. In such cases, reimbursement will be based on the least expensive procedure which, as determined by the benefits carrier, will produce a professionally adequate result. Disabled employees on Workplace Safety and Insurance Board will be eligible for benefits up to twelve (12) months after the date of disability. INTEGRATION: The Plan will not provide like benefits where such are currently being provided by Federal or Provincial legislation. If during the life of this Agreement, Federal or Provincial Governments shall introduce legislation to provided benefits already covered by the Plan, the Plan shall be amended so as to eliminate said benefits. HOW TO CLAIM: After you or one of your dependents has made an appointment with the dentist, obtain a claim form from the Claims Administrator Office. The completed claim form should be returned to the Claims Administrator Office as soon as possible, for submission to the benefits carrier for processing. In the event that the dentist demands payment from the claimant upon completion of treatment, it will be the claimant's responsibility to pay the dentist and then claim

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reimbursement from the benefits carrier. It will be necessary for the claimant to secure a completed claim form from the dentist.

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APPENDIX "J"

EXTENDED HEALTH CARE PLAN The following is a summary of the Extended Health Care Plan coverage by the benefits carrier. You, your spouse and your unmarried dependent children under age 21 are eligible for coverage on the day following four (4) months of continuous employment provided that you are not absent from work due to disability, leave of absence or lay-off. If you are away from work because of disability, leave of absence or lay-off on the date that coverage for you and your eligible dependents would otherwise become effective, benefits will not start until you return to work. The Plan will provide coverage for dependents up to age twenty-five (25) if a full time student. Any mentally or physically disabled child who was covered up to the maximum age shall remain covered beyond such age, provided the child upon reaching the maximum age and thereafter, is incapable of self-sustaining employment and relies upon the employee for support and maintenance. The Plan provides you and your eligible dependents with reimbursement of: (a) 100% of the cost of Class I covered expenses, and

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(b) 100% of Class II covered expenses in excess of the deductible of ten ($10.00) single and twenty dollars ($20.00) family. The Company will provide a Pay Direct Drug Card for all eligible employees. The Pay Direct Drug Card with the same features included for active employees will be provided to retirees as part of the retiree paid Extended Health Care Plan. COVERED EXPENSES: Class I - Semi-private room in hospital Class II - Prescription drugs - Emergency ambulance service - Out-patient hospital services - Fees of registered nurse - Convalescent hospital charges up to the daily semi-private level - Treatments by licenced osteopath, naturopath,

podiatrist or Christian Science practitioner. This coverage will commence after O.H.I.P. has made its maximum yearly payment.

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- Out-of-province emergency treatment, re: hospital and medical expenses in excess of normal charges in province of residence.

- Rental of iron-lung, wheelchair, etc. - Emergency dental work or cosmetic surgery as a result of an accident - Treatments of licensed physiotherapist, psychologist, masseur, speech therapist - Anaesthesia, oxygen, etc. - Ileostomy, colostomy and diabetic supplies - Diagnostic laboratory and x-ray - Purchase of braces, crutches, artificial limbs or eyes

required as a result of an injury - Hearing aids prescribed by otolaryngologist, up to a

maximum of two hundred dollars ($200.00) during a lifetime.

- Treatment by a provincially licensed chiropractor up to fifteen dollars ($15.00) per visit and up to twenty-five dollars ($25.00) per disability for x-rays, subject to a maximum of three hundred dollars ($300.00) per calendar year. No benefits will be paid while the individual is entitled to similar benefits under any provincial health plan.

Reimbursement for paramedical expenses will be $400 per year per type of practitioner; the number of visits will be adjusted accordingly and the minimum reimbursement per visit will be $15. It is understood that current coverage will not be reduced.

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For other items, existing maximum level of coverage will remain in place.

The Company agrees to eliminate the lifetime maximum for extended health care plan for active employees.

HOW TO CLAIM: The Claims Administrator Office has the forms for submitting proof. When the form has been completed, return it to the Claims Administrator Office. Benefits will be paid promptly by the benefits carrier upon receipt of the required proofs. Written proof of claim for Health Benefits must be given to the benefits carrier by the end of the calendar year following the year in which the expense was incurred.

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APPENDIX "K"

LIFE INSURANCE AMOUNT OF INSURANCE: 1. The Company agrees to provide each participating employee, an amount of basic term life insurance benefit of seventy-five thousand dollars ($75,000.00); fully paid by the Company. Effective September 1, 2017 life insurance coverage for an individual employee will increase to eighty thousand dollars ($80,000.00). 2. Each participating employee who is actively at work, may elect to be insured for an additional amount of twenty-five thousand dollars ($25,000), one unit, of term life insurance. Employees actively at work and who meet evidence of insurability requirements of the insurance provider may also purchase up to an additional nine (9) units of term life insurance. The maximum number of units available is ten (10) or $250,000. An employee who elects this additional coverage will be required to pay the full cost of the additional term life insurance through payroll deductions. 3. The Company will provide dependent life insurance on the following basis:

(i) Spouse – fifteen thousand dollars ($15,000.00)

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(ii) Each unmarried child:

who is fourteen (14) days, but less than nineteen (19) years; (and twenty-five (25) years when a student full time), and is wholly dependent on the employee for support seven thousand five hundred dollars ($7,500.00)

The spouse's insurance will be reduced to five thousand dollars ($5,000.00) upon the employee's retirement and cancelled upon their death. For employees who retire, the Company will provide insurance of five thousand dollars ($5,000.00) at no cost to the employee. DEFINITIONS: (a) "Amount of Coverage" means the amount of Term Life

Insurance payable upon the death of the employee. (b) "Basic Term Life Plan" means the plan of Term Life

Insurance to which all its eligible employees must participate.

(c) "Optional Term Life Plan" is a plan in which the eligible

employee of the Company elects to participate. (d) "Unit of Optional Coverage" is the amount of coverage

the eligible employee can select.

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(e) "Spouse" means: (i) A legal spouse (by virtue of a religious or civil

marriage ceremony) who is living with you; or (ii) A common-law spouse of either sex who is living

with you and who has been publicly represented as your spouse for a least one year.

The person whom the participant has designated in writing as their spouse is recognized as the dependent, until such time as the participant advises otherwise. Any dissolution of a marriage through divorce or annulment or, in the case of common law marriage, actual separation, results in the loss of status as spouse. (f) "Child" means: Any single child who is the natural or adopted child of the participant or of their spouse who depends on the participant for livelihood and who meets at least one of the following conditions: (i) They are under twenty-one (21) years of age; (ii) They are under twenty-five (25) years of age and

attending an educational institution on a full-time basis;

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(iii) They became totally and permanently disabled while still considered to be a dependent under i) or ii) above.

ELIGIBILITY: i) Participation in the Basic Term Life Plan is limited to eligible employees who have accumulated one year of service with the Company. ii) Participation in the Optional Term Life Plan is opened to all eligible employees who have accumulated one (1) year or more of service with the Company. APPLICATION TO COMPANY: Eligible employees must submit a signed application card to the Company for the Basic Term Life Insurance. If the employee elects to participate in the Optional Term Life Plan or the Dependent Life Insurance Plan, the employee must submit a signed application to the Company authorizing deduction of the required premium. This signed application card must be returned within 31 days of becoming eligible, otherwise satisfactory medical evidence of insurability will be required at employee cost. REQUIRED PREMIUM: Active Employees: Each participating employee will be provided a basic term life insurance of seventy five thousand dollars ($75,000.00) at no premium cost to the employee. An eligible employee

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who elects to participate in the Optional Term Life Insurance will pay the applicable current premium. Retired Employees: Basic - No Premium COMMENCEMENT OF INSURANCE: (a) Basic Term Life Insurance commences on the 2nd

day of the month following accumulation of one (1) year of service provided an application card has been signed and submitted within 31 days of becoming eligible.

(b) Optional Term Life Insurance commences the first

month following or coincident with the date the employee becomes eligible provided an application card has been signed and submitted.

(c) For a previously participating employee returning

from lay-off or an authorized leave of absence, basic term life insurance commences on the first day of full-time work.

(d) For a previously participating employee returning

from lay-off or an authorized leave of absence, optional term life insurance commences on the first day of the month following or coincident with the date they resume full-time work.

(e) For an employee who elects to participate or

increase their coverage in the Optional Term Life Insurance Plan later than 31 days after the date they

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first became eligible, coverage is effective the first of the month following or coincident with the date they submitted a signed application card, provided the employee submits satisfactory evidence of insurability.

(f) An employee must be actively at work on the date

their basic term life insurance or optional life insurance commences, otherwise the insurance will commence on the date of return to active work.

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APPENDIX "L"

FLEXIBILITY As developed and prescribed under the Two Trades Agreement and the Work system Agreement, operations and maintenance personnel will adopt and fully support the principle that operations can and will do minor maintenance, and maintenance tradespeople will assist in production. EMPLOYMENT SECURITY No employee will be laid off as a direct result of the application of flexibility. Thus, any manpower reduction resulting directly from flexibility will be achieved by attrition only. Any employee hired after March 12, 1994 is not protected by these employment security provisions. The employment security applies to manpower reductions occurring during the life of the collective agreement and which result directly from the application of the work assignment flexibility. Manpower reductions caused by technological change, market conditions, reduction of the operating levels, a total or partial shutdown of a piece of equipment or the mill, etc., are not covered by the employment security provisions except if such protection is specifically provided by other provisions of the collective agreement. This flexibility agreement in no way alters any provision of the collective agreement, letters of understanding, practices

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either verbal or written, except for those which contravene or prevent the application of flexibility as agreed to.

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APPENDIX "M"

TWELVE HOUR SHIFT AGREEMENT The Company and the Signatory Union agree to undertake a change from eight (8) hour to twelve (12) hour shifts. It is understood that either party may terminate this Letter of Understanding and revert to the eight (8) hour shift operation upon giving the other party at least thirty (30) days notice of their desire to terminate the Letter of Understanding. Upon converting to the new schedule and during the first week under it, no premium hours shall be paid to any employee for the sole reason of transferring from one (1) shift schedule to another shift schedule. In the case of reversion to the previous shift schedule, this same rule shall apply upon reverting and during the first week of reversion. The implementation and continuation of the compressed workweek will be on the condition that there will be no extra cost to the Company and that the efficiency of any department or departments will not suffer. The following provisions of the Collective Agreement and all other Letters of Interpretation, Understanding or Agreement between the parties shall be amended as follows only in so far as they apply to employees working under the new twelve (12) hour rotating shift schedule.

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NORMAL HOURS OF WORK: Normal hours of work for employees will be forty-two (42) hours per week - 7:00 a.m. to 7:00 p.m. and 7:00 p.m. to 7:00 a.m., or as otherwise agreed upon between the parties. No shift changes will be permitted prior to thirty (30) minutes before the designated start times. Shift relief change times are to be re-confirmed every year in each department and that these hours would then constitute the normal hours of work for each area. Starting and Stopping: When a tour begins, each tour worker is required to be in their place. At the end of a shift, no tour worker shall leave their place, to wash up and dress, until their mate has changed clothes and reported to take on the responsibilities of the position. If a tour worker does not report for their regular shift, the mate shall notify the Foreman/Supervisor. They shall remain at their post until a substitute is secured to a maximum of four (4) hours. Management will contact the possible relief employees; if they are unsuccessful in obtaining relief, then the most senior employee available must report for duty. It is clearly understood by both parties that replacements must be available for relief purposes when required and that these replacements must come from employees on their scheduled days off.

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Employees on the twelve (12) hour shift schedule who work more than one hundred and sixty-eight (168) hours, in any one four (4) week period will be paid premium time for all hours worked in excess of one hundred and sixty (168) hours during that period. Any work done on an employee's scheduled day off will not be used in calculating the one hundred and sixty-eight (168) hours during that period. There shall be no overlapping of weeks so as to allow for pyramiding. Applies to former Local 105-1 job classifications only: Employees on the five (5) day twelve (12) hour shift schedule who work more than one hundred and twenty (120 hours) in any one three (3) week period will be paid premium time for all hours worked in excess of one hundred and twenty (120) hours during that period.

Any work done on an employee’s scheduled day off will not be used in calculating the one hundred and sixty –eight (168) hours for the 7 day cycle, nor the one hundred and twenty (120) hours for the five day cycle. Any employee who works on the seven day cycle (other than on an employee’s scheduled day off) will be deemed to be on the seven (7) day cycle. EMERGENCY AND NORMAL SHUTDOWNS: In emergency shutdowns due to breakdowns of twenty-four (24) hours or less, (includes the shift in which the

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breakdown occurs and one (1) shift following), operating crews will be provided with work and will be paid at the rate of their regular occupations or at the rate of the job to which they are assigned, whichever is greater. MEAL ALLOWANCE: The clause of the Collective Agreement in reference to work in excess of nine (9) hours, will not apply in the twelve (12) hour shift operation. PREMIUM TIME: Overtime will not apply until after twelve (12) hours, with the exception as outlined in the last two (2) paragraphs of Clause 1201.2. Spare Board employees will be required to work twelve (12) hour shifts without payment of overtime. Double time on Sundays will not apply until after twelve (12) hours has been completed. SHIFT DIFFERENTIAL: Shift differential will apply as per the Collective Agreement for hours worked between 7:00 p.m. and 7:00 a.m. PAID HOLIDAYS: For those employees who would be scheduled to work on a statutory holiday, holiday pay will be based on each

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employee’s normal schedule (8 or 12 hour shifts). Those employees not scheduled to work will receive pay as defined in the collective agreement. ADDITIONAL FLOATING (NON-SHUTDOWN) HOLIDAYS: Floating holidays for eligible employees will consist of four (4) twelve (12) hour days or six (6) eight (8) hour days at the employee's option. The total floating holiday hours payable will be forty-eight (48) hours. BEREAVEMENT LEAVE: All provisions of the Bereavement Leave Clause will be applicable with the following exceptions. Due to the fact that forty (40) hours is not wholly divisible by twelve (12), employees will be allowed time off with no loss of wages for those regularly scheduled days of work lost due to a death in the immediate family. The bereavement leave will be taken at the beginning of the date of death or the time of the funeral service. An employee's immediate family for the purpose of this clause will be considered as spouse, children or stepchildren. When a death occurs to an employee's brother, sister, mother, father, mother-in-law, father-in-law, sister-in-law,

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brother-in-law, step-mother, step-father, step-brother, step-sister, grandmother, grandfather, son-in-law, daughter-in-law or grandchild, the employee will be granted a leave of absence and will be paid for twelve (12) hours at their regular straight time rate of pay for up to a maximum of two (2) scheduled working days. The bereavement leave will be taken at the beginning of the date of death or the time of the funeral service. JURY DUTY: All the provisions of the Jury Duty Clause will be applicable except as follows: The difference between such fees received (not including meals, lodging and mileage allowance as allotted by the Court) and the normal wages for regular straight time, twelve (12) hour working days falling within their normal work week for the duration of the jury duty or jury roll call or Crown or Defence Witness. An employee scheduled to work the midnight shift or tour immediately prior to jury roll call or duty on that date will be excused upon request and their regular straight time rate will be paid to a maximum of twelve (12) hours. EXAMINATION PAY: All the provisions of the Examination Pay Clause will be applicable as follows:

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When an employee is off to write examinations on a scheduled working day, the Company will pay for that day at twelve (12) hours times the regular straight time rate provided that one (1) or more exams written on that day are passed. WEEKLY INDEMNITY PLAN: Clause 2402 (f) of the Weekly Indemnity Plan shall apply to the twelve (12) hour shift schedule. ELIGIBILITY FOR BENEFITS: Employees on the twelve (12) hour shift schedule will become eligible to join the Dental Care Plan and the Extended Health Care Plan the day following completion of four (4) months of continuous employment provided that you are not absent from work due to disability, leave of absence or lay-off. Employees on the twelve (12) hour shift schedule shall be considered to have worked on 1 ½ days per 12 hour shift in calculating the 57 days for pool employee eligibility for Weekly Indemnity.

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RULES OF CONDUCT: Reporting after an absence will be as per the Collective Agreement for day shift and be 12:00 noon for the night shift. OPERATION OF ESSENTIAL SERVICES: Employees required as per the Collective Agreement for start-up and shutdown will be on the basis of an eight (8) hour shift. START-UP CREW: Where reference is made in the Collective Agreement to one (1) shift, it shall mean an eight (8) hour shift. REGULATIONS, RE: RESERVES AND TRADES SHIFT RELIEF: Reserves and Trade Shift Relief in departments on the twelve (12) hour shift schedule will not be entitled to a time and one-half (1½) day until the third, four (4) day week in a four (4) week period. The time and one-half (1½) day in this case would be the fourth twelve (12) hour shift of that week. This will apply provided that the employee has satisfied the one hundred and sixty-eight (168) hours clause under "Normal Hours of Work".

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REGULATIONS, RE: TRADES SHIFT RELIEF/ RESERVES For Trades Shift Relief/Reserve employees not scheduled to work a full work week in accordance with an established twelve (12) hour schedule, the following hours of work will constitute a full work week: 1. 3 x 12 hours + 1 x 8 hours = 44 hours 2. 2 x 12 hours + 2 x 8 hours = 40 hours 3. 1 x 12 hours + 4 x 8 hours = 44 hours 4. No 12 hour shifts + 5 x 8 hours = 40 hours Any hours in excess of the above combinations shall be paid at premium rates of pay. A full work week 4 x 12’s, outside an established shift schedule is 44 hours straight time and four hours at time and one half. SAFETY & TRAINING MEETINGS: There will be a safety and training meeting conducted at least once every three (3) months. When these meetings are scheduled, the incoming crew will be required to come in early and be paid time and one-half (1½) for the overtime hours worked. The outgoing crew will attend the meeting at straight time rates of pay.

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PROVISIONS FOR ELECTIONS: Employees, who are eligible to vote, working on the day shift on the date of a Federal or Provincial election will work their regular scheduled hours of work and will be compensated through the payment of time and one-half (1½) at their regular straight time rate for the last three (3) hours of their shift. Employees already working at the overtime-premium rate of pay will receive one (1) additional hour's pay at straight time rate. TWELVE HOUR SHIFT SCHEDULE The Company is prepared to look at other alternative shift schedules for the site and provide trials. If the alternatives do not add cost above the current schedule and are acceptable to the crew(s), then the new schedule would be implemented.

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APPENDIX ‘N’

Work Systems Agreement

The parties agree that the work system agreement agreed to by the parties on December 15, 2004 forms part of the collective agreement and is enforceable as a provision of this collective agreement.

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APPENDIX O

Establishment of Two Trades Agreement

The parties agree that Establishment of Two Trades agreement agreed to by the parties on December 19, 2003 and; subsequent amendments of January 20, 2011 form part of this collective agreement and; is enforceable as a provision of this collective agreement.

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APPENDIX P

PAID EDUCATION LEAVE

The Company agrees to pay into a special fund an amount of three cents ($.03) per hour for all hours worked to provide for the Unifor Paid Education Leave (PEL) program. Such payment will be remitted on a quarterly basis into a trust fund established by the Unifor National Union effective from the date of ratification. Payments will be sent by the Company to the following address:

Unifor Paid Education Leave Program 205 Placer Court Toronto ON M2H 3H9

The Union will submit for approval by the Company requests for education leave and the list of participants of each bargaining unit. Employees on PEL leave of absence will continue to accrue seniority and service.

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APPENDIX Q

DECISIONS IMPACTING JOB SECURITY In the event of a situation where the Company must proceed with or is contemplating significant changes that impact the workforce, such as permanent mill, or department closure, the Company will inform the Union a minimum of 30 days in advance where possible. The Company will work with the local Union and a National Representative of Unifor to put in place transition measures to mitigate the impact of these changes, such as early retirement, utilizing all available EI and other programs. Where possible this local discussion will take place within 7 days following the announcement.

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APPENDIX R

NATIONAL FOREST SECTOR COUNCIL Upon the creation of a renewed National Forest Sector Council the Company agrees to revisit supporting and participating in the Council.

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Signed this 30th day of April, 2015

For the Company: For the Union: ______________ ______________ Jim Blight Steve Boon ______________ ______________ Jan Park Nick Chasowy ______________ Annette Ducharme _______________ Terry Ambridge ________________ Rick Froome ________________ Al Stienke ________________ Cory Oltsher